What is the Purpose of a Financial Plan?
Advantages of Having a Financial Plan
What are the advantages of having a financial plan? It gives you more confidence, not only for the unforeseeable future but also gives you the peace of mind that if anything happens, you know what to do next.
Planning Philosophy
Importance of Financial Planning for Your Future
Growth in income
It helps you grow your income. Even if you're a W2 employee, 1099 employee, or a business owner, you might be limited on the amount of money that you bring in. Financial planning makes sure to take a 12,000 feet view of where the money is coming from and where it is going. Whether you are overspending or over funding, financial planning will take those extra dollars and funnel them to another activity that you might have been neglecting for years.
Cash flow growth
Once the money is in your bank account where does it go? Sometimes when we break a hundred-dollar bill, by the end of the day, it's just gone. You don't know where it went. The same thing with your bank account, you have automated bills that you are not looking at. You don't know what you are paying for. Sometimes, people pay for subscriptions they don't need. Most of the time, we are just burning money instead of finding what is the problem. Financial planning will allow you to find that problem.
Secure the Future of your Family
Build security for your family and your future. We are our biggest assets. It’s our ability to generate income and generate money whether to our own business or employment. It’s the foundation for everything that we want to do in the future. What are we gonna do when we get hurt or sick and can’t work? Or if we have an untimely passing? What if something happens to us that we need care? We have to plan for when it happens.
Investments & Asset Creation
With family planning, we can make sure that we focus on placing investments and asset creation. We create assets from our purchases, our investments, and our expenses as opposed to taking money from A and turning and moving into B. Make sure that the money from A generates enough to create a C over time.
Helps you be Prepared To Deal with the Unforeseeable
A financial plan helps you be prepared for the unforeseeable situation especially when you have to deal with either your family or business. In that case, when a situation happens you already know what to do. You have that checklist of the emergency backpack and you know what's in there and how to use it.
Achieve your long-term goals
Whether it is to grow your business, create a new one, buy a vacation home in Florida, or that villa in Tuscany, your financial plan will help you visualize that and engage you there.
Have a very Happy Retirement
As business owners, we tend to not put our masks on. We are concerned about our employees, our clients but not our own future. Financial planning will allow you to make the decision whether you want to work or when you want to work. Planning for retirement will give you that financial independence of not having to do stuff and doing what you really care about whether it is charity, family, or even working for your community. Having a plan will help you get there in a quicker, easier, and better way.
Q&A with Candido
Q: People who were planning to retire prior to Covid, has that changed anything?
A: In the beginning, many people jumped off the boat and try to get off the market and move away from their accelerated plans. But now in the post-pandemic, it's pushing people. I have clients that are pushing retirement that we're scheduled to retire in 2022 and 2023 that are pushing it to 2025 and 2026 just because of the concern with the economy. Especially the tax code which we don't know what's going to happen by the end of the week and from Friday to Monday the whole proposed bill was completely changed so there are a lot of concerns but we help them navigate through those.
KEY TAKEAWAYS
ABOUT CANDIDO RODRIGUEZ
Candido is affiliated with Northwestern Mutual, a mutual company that has been around for over 167 years helping customers through difficult times by identifying and setting their financial goals. Candido makes a plan to align and achieve your dreams and aspirations by taking a personalized approach. He develops a plan that is flexible and is sure to work in favor of his clients’ needs.
Get to know Candido Rodriguez more!
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