The importance of good financial planning cannot be understated. Financial planning can involve evaluating and analyzing one’s financial circumstances both in the present and the future (whether it be for an individual, family, business, or a combination thereof), seeking to optimize those financial circumstances to achieve better financial outcomes. Without good financial planning, opportunities may be missed, goals may not be achieved, and your overall financial well-being may suffer.
Financial planning typically involves one (or more) of six areas of planning:
- General Financial Planning – This area may involve cash flow and debt management.
- Retirement Planning – Retirement planning involves evaluating one’s ability to achieve financial independence, typically at some point in the future.
- Tax Strategy & Optimization* – While it may not be possible to eliminate the need to pay taxes, good financial planning will seek tax strategies and optimization that can help reduce taxes owed (both today and in the future).
- Investment Planning – In order to achieve other goals (such as retirement and financial independence), a good investment strategy will seek to grow your assets with a disciplined portfolio based on your time horizon and ability to withstand market variability.
- Insurance Review* – One area of risk management (the things that can get in the way of achieving your long-term goals) is insurance. Insurance reviews seek to manage the risks you may face (such as health events, accidents, and liability events) to reduce the likelihood your financial goals are derailed.
- Estate Planning* – An estate plan can involve drafting and executing certain legal documents to pass on assets to heirs, plan for your incapacity, and ensure your wishes are followed. It may also involve structuring your estate to achieve asset protection from liability events.
While the areas above are considered the six main areas of financial planning, one’s circumstances may require the need for other planning, such as education planning.
At Parable Wealth Advisors, our goal is to provide comprehensive and holistic financial planning for clients involving one or more of the areas listed above. We seek to help clients achieve their short- and long-term financial goals, optimize tax strategies, and manage risks. Our team includes a Chartered Financial Analyst®, a CERTIFIED FINANCIAL PLANNER™, and a board-certified estate attorney. If we can assist you and your family on your financial planning journey, please contact us
*In some planning areas, an outside professional may be needed to evaluate and implement certain strategies and planning. We can work with an outside professional you choose or provide a referral to an outside professional if needed.
