Personal Financial Planning

Personal financial planning is a process of developing and coordinating the implementation of a flexible plan to use an individual's available financial resources to achieve specific financial goals.  The subject areas of personal financial planning are listed below:

  • Cash Management and Budgeting

      Do you have adequate resources and availability of discretionary cash flow?

  • Risk Management and Insurance

      Risk by definition means the possibility of multiple outcomes, some of which may not be favorable.  Are you properly protected from the potential unexpected events and attendant risks?

Unexpected Event

Attendant Risks

Liquidity Crisis (Debt calls, income tax assessments, living beyond means)

Forced sale of assets at sacrifice prices

Death

Loss of family earnings; Attendant estate tax liability

Sickness

Unlimited medical expenses; Loss of family earnings

Property Loss (Fire, thft, etc.)

Loss of assets or asset values

Persaonal Liability Claim (Auto or home accident, directors' liability, etc.)

Costly court judgement or settlement; Legal expenses

  • ·Education Planning

      The increasing costs of higher education has made education planning an important aspect of personal financial planning.  Have you addressed the four basic methods of paying for a child's education?

        1.The child pays for college by working his or her way through school.

        2.The family obtains financial aid.

        3.The parents pay college expenses out of current income and assets.

        4.Separate education funds are accumulated over time.

  • Retirement and Financial Independence Planning

      If you are over the age of 40, have you thought about your desired financial independence and the quality of life you wish to attain.

  • ·Estate Planning

      The focus in estate planning is on the efficient collection management and distribution of accumulated financial resources for specific lifetime purposes.

  • Investment Planning and Asset Allocation

      Investment planning can be a complex and challenging task. The number and variety of investment vehicles is ever changing and numerous factors such as inflation, interest rates, government regulations, tax laws and economic indicators also affect investment planning decisions.

  • Integrating Tax and Financial Planning

      Part of the overall goal of financial planning is to use an individual's available financial resource to increase wealth or produce cash flows.  It is difficult if not impossible, to achieve this goal if the tax consequences of implementing a new plan or managing an existing plan are not properly considered.

[Tax and Business Alert]