Financial Planning — Why You Need It and Who Can Help

Ralph Byer
3 min readFeb 8, 2023

--

Financial planning is vital for everyone, no matter their income level. If you’re serious about building wealth, you must start thinking about your finances now.

Financial planning is creating a roadmap for your finances so that you can make informed decisions about how to best use your money. This includes setting goals, tracking your progress, and making necessary adjustments.

There are many benefits to financial planning. However, the most important reason to create a financial plan is to take control of your finances and ensure that your money is working for you. A financial plan can help you organize your finances, create a budget, set financial goals, and make informed investment decisions.

Financial planning can help you make the most of your money. Investing and spending wisely can result in more money than you started with. This can lead to greater financial security in the future. Furthermore, it can help you deal with unexpected financial challenges more calmly and effectively. If you have a plan, you’ll know what to do if something unexpected arises.

Financial planning can help keep you accountable for your finances. Having a plan will motivate you to stay on track and not make any impulsive decisions with your money. In addition, it can help increase your confidence in making financial decisions. The more knowledgeable you are about personal finance, the better equipped you’ll be to make sound choices regarding your money.

Finally, financial planning is important because it’s an ongoing process, not a one-time event. Your financial situation will likely change over time, so it’s important to review and update your plan regularly to ensure that it still meets your needs. By doing this, you can keep yourself on track financially for years.

A financial planner can help you create a plan to reach your financial goals. Financial planners typically have a background in accounting or financial management. Some also hold certification from professional organizations such as the Financial Planning Association or the Certified Financial Planner Board of Standards.

To develop a personalized plan, financial planners will consider your income, debts, and investment goals. They typically charge an hourly fee or a percentage of assets under management. Some also receive commissions for selling financial products.

There are many financial planners, each offering levels of services and expertise. They can advise on various topics, including investment strategies, retirement planning, and tax planning. Here are a few of the most popular types of financial planners:

Investment advisers provide advice on how to grow and protect your wealth. They can help you create a portfolio that meets your unique goals and offer guidance on when to buy, sell, or hold onto investments.

Retirement planning specialists help people save for retirement and manage their retirement accounts. They can assist with everything from setting up a retirement plan to determining how much money you’ll need to have saved to live comfortably in retirement.

Tax professionals can help you minimize your tax liability and maximize your tax refund. They can also help you navigate the often-complex world of tax laws and regulations.

Various online financial planning services can help you meet your financial goals. A robo-advisor is a computerized investment management system that automatically allows investors to invest their money. They do not need to interact directly with any human being. These systems use algorithms to determine investments and rebalance portfolios according to market conditions.

Sign up to discover human stories that deepen your understanding of the world.

Free

Distraction-free reading. No ads.

Organize your knowledge with lists and highlights.

Tell your story. Find your audience.

Membership

Read member-only stories

Support writers you read most

Earn money for your writing

Listen to audio narrations

Read offline with the Medium app

--

--

Ralph Byer
Ralph Byer

Written by Ralph Byer

Ralph Byer of Merrill Lynch talks family, travel, community engagement, and volunteering. For more, visit https://ralphbyer.info/!

No responses yet

Write a response