13 Suggested Reasons for Secure Financial Planning

Posted on April 28, 2016 by Shawn Friday, MEd, LPC, CEAP

Updated November 30, 2020

Financial Planning Critical to Long Term Success

Financial planning begins with exploring where you are now financially, where you want to go and how to get there. Regardless of your current financial state, planning is a critical part of ensuring your financial well being and should include writing down specific goals.

Financial PlanningThere are several reasons why many do not plan, including:

  • Fear of what they will discover
  • Belief it is too expensive
  • Concern the financial planner will rip them off (if using a professional)
  • Thinking it is not necessary
  • Lack of information

Getting informed is the first step and once you do this, the need for planning will be clearer. Getting informed may include consulting a financial planner, attending a class or seminar, using a financial planning website (e.g. Mint.com or Personalcapital.com) or reading up on personal finance.

Whether you use a financial planner or not, there are many potential goals you will want to consider protecting your assets in the event of

  • Short or long term disability preventing you from working
  • Physical or mental health problems preventing or limiting ability to work
  • Unforeseen costly medical treatment
  • Loss due to liability claims against you; defending against such claims can cost a lot, even with a successful defense.
  • Your death. What are the tax implications? Who will get your assets? Will it be those you want to receive your assets or will it go to others? The government?
  • Needing long term care in a nursing home, costs can be more than $80,000 a yer. If you have significant assets, Medicare may take most of it before paying for care.
  • Loss of property due to fire, floods, burglary, hurricane, etc.

Saving sufficient money to:

  • Start your own business
  • Make a significant purchase
  • Prepare for possible emergencies (3 to 6 months of living expenses is recommended)
  • Fund your child’s college education
  • Retire comfortably
  • Go to school, go back to school or change your career

Keep as much of your money as possible through:

  • Minimizing tax burdens during your lifetime and after death (e.g. income, estate, business, or gift taxes)
  • Having your money invested in an appropriately diversified portfolio (including varied types of asset classes like stocks, bonds, cash, commodities, real estate, etc.) without excessive fees or unfavorable tax implications
  • Managing your money and living below your means (having money left over after paying bills), looking to save at least 15% of your income
  • Managing your debt and having a plan for eliminating it

We Can Help

Members: Does all of this seem a little overwhelming? We can help, give us a call:

  • EAP members call 800.383.1908 or access resources through your VITAL WorkLife App
  • Physician Well Being Resources members call 877.731.3949 or access resources through your VITAL WorkLife App

Interested in learning more?

Contact Us


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