Do you picture yourself owning a new
home, starting a business, or retiring
comfortably? These are a few of the
financial goals that may be important
to you, and each comes with a price tag
attached.
That's where financial planning comes
in. Financial planning is a process
that can help you target your goals by
evaluating your whole financial picture,
then outlining strategies tailored to your
individual needs and available resources.
Why is financial planning important? One of
the main benefits of having a financial plan
is that it can help you balance competing
financial priorities. A financial plan will
clearly show you how your financial goals
are related--for example, how saving for
your children's college education might
impact your ability to save for retirement.
Then you can use the information you
have gleaned to decide how to prioritize
your goals, implement specific strategies,
and choose suitable products or services.
Best of all, you will be more confident that
your financial life is headed in the right
direction.
The financial planning process. Creating and
implementing a comprehensive financial
plan involves working with financial
professionals to:
- Develop a clear picture of your current
financial situation by reviewing your
income, assets, and liabilities, and
evaluating your insurance coverage,
your investment portfolio, your tax
exposure, and your estate plan
- Establish and prioritize financial goals
and time frames for achieving them
- Implement strategies that address
your current financial weaknesses
and build on your financial strengths
- Help ensure that the services you are
utilizing are tailored to your goals
- Monitor your plan and prepare to
adjust as your goals, time frames, or
circumstances change
Some members of the team. The financial
planning process will likely include a
team of professionals to ensure the plan
is effective. Financial planners typically
play a central role in the process,
focusing on your overall financial plan,
and often coordinating the activities of
other professionals who have expertise
in specific areas. Planners who have
the CFP designation are held to a high
standard and have expertise in all areas of
the planning process. Accountants or tax
attorneys provide advice on federal and
state tax issues. Estate planning attorneys
help you plan your estate and give advice
on transferring and managing your assets
before and after your death. Insurance
professionals evaluate insurance needs
and recommend appropriate products
and strategies. Investment advisors
provide advice about investment options
and asset allocation and can help you to
build and manage an investment portfolio
to meet your long-term goals.
The most important member of the team,
however, is you. Your needs and objectives
drive the team. Once you have carefully
considered any recommendations, all
decisions lie in your hands.
Staying on track. The financial planning
process doesn't end once your initial
plan has been created. Your plan should
generally be reviewed at least once a year.
It's also possible that you'll need to modify
your plan due to changes in your personal
circumstances or the economy. Here are
some of the events that might trigger a
review of your financial plan:
- Your goals or time horizons change
- You experience a life-changing event
such as marriage, the birth of a child,
health problems, or a job loss
- You have a specific or immediate
financial planning need
- Your income or expenses substantially
increase or decrease
- Your portfolio hasn't performed as
expected
- You are affected by changes to the
economy or tax laws
No matter what type of help you need,
CNB Wealth Management’s financial
planning team can help ensure you are on
track to meet your financial goals and will
gladly answer any questions you have. Schedule an appointment with one of our financial advisors.
This material is provided for general information purposes only. Investments and insurance products are not FDIC insured, not bank deposits, not obligations of, or guaranteed by Canandaigua National Bank & Trust or any of its affiliates. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please consult your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.