Financial Planning – It’s for Everyone
Financial planning is a process that can and should be applied to all those who seek it. I am so tired of seeing these TV commercials where the moderator speaks about a great quality of life in retirement, or funding for your children’s education, or buying that dream vacation home and then says at the end “if you have $500,000 or more in investable assets, give us a call”. Most of you reading this don’t have $500,000 in investable assets and that is one of the reasons you need a financial plan. Or, you are still young and would like to have a quality financial plan created for you so that you can get to that mark or considerably higher. At Joseph F. Fragnoli, CPA, Inc. and our affiliate company, Cohesive Financial Planning, Inc. in Ave Maria Florida, Nashville Tennessee, and Southern California, we focus on those people who have just left the nest and are starting out on their own, and people who are late to the party in planning for retirement.
Financial Planning – Start Early and Reap the Rewards
If you are just now entering the workforce, have just moved out of your parents house, and are ready to build your future, there is not a better time to develop a financial plan for your future. Whether it is saving for that first home purchase, paying off student loans and credit cards, buying a new car, or begin early funding for retirement, the earlier you start the process the less difficult it will be. For example, say you are a newlywed and children are in the future, life insurance is much less expensive in your twenty’s than in your forty’s. You can purchase excellent coverage with some cash value built into the policy for a relatively small premium (depending on health and other factors). If you start saving a fairly small amount of money each month in your IRA or company’s 401K, it will add up quickly and accumulate to a pretty sizable amount by the time you retire. If you wait until later, then that number becomes much greater and more difficult to handle.
It’s Never too Late to Plan – Don’t Give Up
One area that we have done a lot of consulting in with individuals is with those who have not saved anything for retirement and are approaching or exceeding the age of 50. Many come to me and say that they will never be able to retire because they don’t have any retirement savings. The truth is that this does not have to be the case. Will the individual retire with a perfect retirement situation, probably not. But, can a person who starts this late save enough to have a comfortable and happy retirement, absolutely. I have built this plan specifically for myself as I am one who is a little late to the party. One major impact on disposable income that can be applied to retirement funding is the decline in living costs after the kids are all gone and college is all paid for. That money can be put to retirement savings and it adds up very quickly. The other objective is to become debt free with maybe the exception of one’s mortgage. In my plan, I design it so that the person pays off all their debt and reduces their mortgage as much as possible. Then, if necessary to reduce month costs, just prior to retirement, the person refinances their mortgage to a new loan reducing their monthly payment significantly. These are just a few considerations in striving toward retirement when one is late getting started.
So, if you are interested in setting a direction toward financial peace of mind and meeting desired financial goals give us a call at (239) 658-5217 or (615) 678-4751. Alternatively, you can reach me directly at (615) 513-5522 – cell. You can also e-mail me at firstname.lastname@example.org.