Why Do You Need a Financial Plan?

A financial plan provides you a road map that guides you through different stages of your financial life. Without a proper plan you subject yourself to many risks that could leave you insufficient resources for retirement or fail to leave the legacy you have envisioned.


A comprehensive financial plan will consist of 6 pillars of healthy financial life:

  • Cash Flow Management Planning
  • Risk Management Planning
  • Investment Planning
  • Retirement Planning
  • Tax Planning
  • Estate Planning


You will be vulnerable to many risks without a financial plan:

  • The risk of outliving your money: people are living longer because of medical advancements, which is great, but you should make sure you can accumulate enough resources to support a longer, happy retirement.
  • The risk of being unable to depend on social security income: the Social Security Trustees Reports projects the SS general fund will be depleted by 2034. In that event, you will have to use your own resources to fund retirement.
  • The risk of being unprepared for the rising costs of medical insurance and long-term care: these will comprise the major percentage of retirement expenses which you may not have taken into consideration while you are young and healthy.
  • The risk of failing to leave a legacy: an important goal for many people is to take care of their loved ones in the case of disability or accidental death.
  • A comprehensive financial plan will address those risks, and ensure you will have enough money and resources to maintain your life style and achieve your goals.