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  • Evan Werckenthien

Importance of a Financial Plan

Updated: Aug 4

Importance of a Financial Plan


In college, students don’t enroll in random classes for no rhyme or reason and hope they are on track to graduate.  Individuals making a cross country road trip from New York to California would not leave their house and hope they make it to California without any directions.  Of course not– it would be terribly inefficient and borderline crazy!

In the world of personal finance, however, this notion of either not planning at all or not thoroughly planning is a common tendency.  Nearly a third of Americans do not have any type of financial plan1 whatsoever.  Only 43% of Americans have a financial plan that covers five or more key financial planning elements1.


Financial plans are the road maps or curriculum requirements of our adult lives.  They keep individuals on track to hit their goals.  Financial plans are fluid and ever-changing to encompass both short and long-term goals.  If a pothole is hit or a turn is missed, the financial plan is adjusted to make sure the same outcome is achieved.  For example, a 20 -year- old may have different goals and objectives than a 30- or 40-year-old.  A financial plan helps create clarity in goals and objectives while striving towards them in the most efficient manner possible.  Why is it so important to have a comprehensive (multi-dimensional) financial plan?


A comprehensive financial plan pulls together interrelated areas to address and plan for all aspects of life.  For example, when looking at retirement planning, it is important first to look at cash flow, budgeting, savings, and other areas to ensure there is a balance between long- term and short- term goals.  Comprehensive financial plans create a well-rounded financial individual.  What would happen if some

Conclusion

A financial plan is a very important part of our lives!  Far too few Americans have one, regardless of its depth.  It is the path, road map, and direction to help us achieve our goals.  Plans are also not based a singular issue but encompass many topics ranging from investments, to debt management, to estate planning, to budgeting and savings, etc.  Make sure you have a financial plan, and if there is one existing, make sure it has depth and is not a single issue plan.

Evan@EWwealth.com

Work: 317-587-0858

Cell: 317-627-2529


Disclosure:

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. E.W. Wealth Management and Cambridge are not affiliated. The information in this email is confidential and is intended solely for the addressee. If you are not the intended addressee and have received this email in error, please reply to the sender to inform them of this fact. We cannot accept trade orders through email. Important letters, email, or fax messages should be confirmed by calling 317-587-0858. This email service may not be monitored every day, or after normal business hours. Cambridge does not provide tax advice.

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Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA / SIPC . Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. E.W. Wealth Management and Cambridge are not affiliated.

Check the background of E.W. Wealth Management,  Evan Werckenthien on FINRA's BrokerCheck

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