INSIGHTS

Personal Financial Planning Basics

by Chad Van Dyken, CPA, CFP™ 

ARTICLE | January 10, 2025

Financial Planning

Creating and following your long-term financial roadmap can be daunting, even during stable times. In an economic environment that is constantly in flux, staying on top of your financial life may seem more challenging than ever. It’s also more important than ever. Our thoughtful approach to Personal Financial Planning helps you see the big picture, set short and long-term goals and give you peace of mind that you’ll be able to reach success.

What is a Personal Financial Plan?

Whether it’s giving your daughter her dream wedding, traveling the world once you’re retired or making sure your kids (or grandkids) get to go to their top college — you have goals. But, how do you get there?

A Personal Financial Plan is a documented story that evaluates your existing resources and designs a financial strategy that, when implemented, helps direct you to achieving those goals.

A Personal Financial Plan can incorporate many different topics and looks different for every individual’s unique scenario. Some of the most common areas that are incorporated into a Personal Financial Plan include, but are not limited to:

Who Needs a Personal Financial Plan?

Financial Plans can be beneficial to anyone, regardless of age, income level or other specific lifestyle factors. However, we strongly encourage individuals and families with $2 million or more of net worth to have a Personal Financial Plan to protect their assets and plan for the future accordingly.

If you’re not sure whether you need a Personal Financial Plan or not, we encourage you to ask yourself any of the following questions:

  • Do you want to define and document your financial goals?
  • Do you want to see whether your financial goals are realistic?
  • Do you want to see how your day-to-day spending impacts your goals?
  • Do you want to identify what financial mistakes you may currently be making?
  • Do you want a system to measure progress on your f inancial goals?
  • Do you want to consider risks you may not be aware of?
  • Do you want to be more confident with your personal financial situation?
  • Do you want financial peace of mind, knowing you have a plan toward achieving your goals?

How It Works

Our approach to Personal Financial Planning focuses on developing a relationship with you so we better understand your overall goals and how we can help you achieve them.

  1. First, we’ll talk about the scope of the Financial Plan, including roles and responsibilities. Once we’ve jointly determined scope, we engage in a discussion about your goals – things you want to accomplish, concerns and priorities.
  2. We’ll then collect information from you that will help us determine your current financial situation, including current and future income sources, investments, property or asset you own and debts, among other items.
  3. After you’ve provided information, we’ll craft the first version of your Personal Financial Plan, which we’ll review with you as a draft plan. This is an opportunity for us to work together in making any revisions to the plan.
  4. Finally, after your input, we’ll create the final plan and deliver it to you. During the final delivery, we’ll review what the information tells you, what assumptions were made and strategize about how you’ll best achieve your goals. Now, you’ll have the tools you need to work toward your goals, and we’ll continue to monitor your progress alongside you.

Let’s Start Today

By developing a road map, you can clarify your objectives and set timelines to achieve them. We would be honored to assist with your personal financial plan, and look forward to helping you achieve your long-term goals. Call us today at 800.447.0177 for more information.