Category

College Planning

What does a “personal financial plan” really look like? (And why should I pay a professional to craft one?)

By College Planning, Financial Planning, Retirement

It’s a question I get asked often.  After all, there are plenty of online calculators out there. They’ll take some basic inputs about your big picture goals – like private college for your child or retiring at 60 – and spit out a number for how much you should be saving every year. They’re easy to use – and free!

My answer? The reason those tools are easy to use is because they make so many simplifying assumptions.  And we all know that real life is always little more complicated…. Financial planning – when done thoughtfully and rigorously – creates a detailed, customized map to help you navigate your way to where you want to go.

Your plan should include a detailed analysis of your income streams and expenses, now and in the coming years. It should allow for the running of different scenarios around big decisions that you control, like

  • sending your child to an in-state university or more expensive private college;
  • plowing some of your savings into that dreamed-of vacation home;
  • retiring early to travel or pursue other hobbies; and/or
  • electing to take your Social Security benefits earlier v. later.

Your plan must also take into account what you cannot control, namely the potential pitfalls along the way – like stock market downturns, unexpected medical diagnoses and runaway inflation – and help you steer your way through them.

A financial planner worth their salt knows how to ask the right questions to help enunciate your goals and prepare a plan that shows you how you can achieve them.

What does such a plan cost, you ask?  Well, it depends. At McPeake & Company, we are happy to discuss your current situation and future goals in a free hour-long consultation. Following that, we’ll prepare a detailed proposal and cost estimate for you. If you decide to move forward with us, we’ll get to work!