Your financial aims may include funding college education, planning a secure retirement, purchasing a new home, starting a business, minimizing taxes or any combination of these objectives. No matter what your goals are, developing a comprehensive financial plan is one of the most important steps you can take toward achieving them. While your financial situation and objectives are unique, here are 10 of the most pertinent reasons for investors to establish a good financial plan.

1. Americans are living longer, healthier, more active lives than ever before. Many will spend nearly as much time in retirement as in their careers. If a longer, more active retirement is in your future, it is likely you will need significant financial resources.

2. The cost of higher education continues to outpace inflation at a time when the need for a higher education has never been more evident. A good financial plan can help you prepare for these costs.

3. Increasingly, Americans are required to take responsibility for their own healthcare - that may mean you'll be choosing your health care coverage options from a menu plan and funding all or part of your coverage on your own.

4. Estate taxes may consume as much as 55% of a person's estate within 90 days of his or her death. Establishing a sound financial plan can preserve a legacy for your heirs by helping to shield your assets from estate taxes.

5. A financial plan provides a complete assessment of your current financial situation from your net worth to your cash flow and debt management practices and identifies how you may be able to improve them.

6. Financial planning helps you take a comprehensive look forward to your future financial needs and goals, including cash flow and debt management, education funding, retirement planning, estate conservation and portfolio management.

7. A comprehensive financial plan identifies specific strategies and opportunities for actively working toward meeting your financial objectives.

8. A financial plan can help you protect your family, business interests and investment portfolio by helping you to determine the amounts and types of insurance that may be right for you.

9. A comprehensive financial plan helps you to organize your network of professionals, including lawyers, accountants and other influential specialists and puts you in the control position.

10. As your needs, goals and financial situation change over time, a financial plan gives you the flexibility to alter your financial strategy to meet new objectives. To be effective, you and your financial advisor must weigh several factors, including your objectives and time frames, your personal investment philosophy and your tolerance for risk.

The dawn of the new millennium may be the perfect time to set up a financial plan that will help you get control of your finances for the future.

This article does not constitute tax or legal advice. Consult your tax or legal advisors before making any tax-related or legally related investment decisions. This article is published for general information purposes and is not an offer or solicitation to sell or buy any securities or commodities. Any particular investment should be analyzed based on its terms and risks as they relate to your circumstances and objectives.

[ Learn More About William J. Berrall | Check Out Our Message Boards |
Back to Experts' Advice | Ask A Question ]