Comments on: What is a Financial Plan and Why Have One? http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Wed, 22 May 2013 01:14:53 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: All You Ever Wanted to Know About Emergency Funds (But Were Afraid to Ask) ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-157024 All You Ever Wanted to Know About Emergency Funds (But Were Afraid to Ask) ? Get Rich Slowly Wed, 19 Nov 2008 20:56:35 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-157024 [...] Dylan Ross. Dylan is a long-time member of the Get Rich Slowly community: a frequent commenter and occasional guest author. He’s also a Certified Financial Planner. This article is an abridged version of [...]

[...] Dylan Ross. Dylan is a long-time member of the Get Rich Slowly community: a frequent commenter and occasional guest author. He’s also a Certified Financial Planner. This article is an abridged version of [...]

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]]> By: Suparna Tyers http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84883 Suparna Tyers Sat, 28 Apr 2007 11:38:01 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84883 Hi, I live in Melbourne Australia. Our accountant has just drafter a financial plan for our superannunation, insurance, etc which looks like something that has been punched out of a computer program. He told us that there would be an ongoing fee which would be worked out on a percentage basis every year. This seems like a lot of ongoing costs. What do you think? Hi,
I live in Melbourne Australia. Our accountant has just drafter a financial plan for our superannunation, insurance, etc which looks like something that has been punched out of a computer program. He told us that there would be an ongoing fee which would be worked out on a percentage basis every year. This seems like a lot of ongoing costs. What do you think?

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]]> By: When and How To Hire a Financial Planner? ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84595 When and How To Hire a Financial Planner? ? Get Rich Slowly Tue, 24 Apr 2007 12:00:47 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84595 [...] to my RSS feed. Thanks for visiting!Last week Dylan Ross, a certified financial planner, explained what a financial plan is and why it’s important to have one . Today he discusses why you might want to hire somebody to help you create [...]

[...] to my RSS feed. Thanks for visiting!Last week Dylan Ross, a certified financial planner, explained what a financial plan is and why it’s important to have one . Today he discusses why you might want to hire somebody to help you create [...]

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]]> By: MoneyChangesThings http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84075 MoneyChangesThings Wed, 18 Apr 2007 01:54:15 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84075 While it's important not to die too young, you can also OUTLIVE your financial plan. Young people coming of age today can easily expect to live into their 90's, so if you retire in your 60's, you could be looking at financing a 30 year retirement! This has already happened to my 90 year old aunt. Her greatest fear now is outliving her resources. While it’s important not to die too young, you can also OUTLIVE your financial plan. Young people coming of age today can easily expect to live into their 90′s, so if you retire in your 60′s, you could be looking at financing a 30 year retirement!
This has already happened to my 90 year old aunt. Her greatest fear now is outliving her resources.

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]]> By: Dylan http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84060 Dylan Tue, 17 Apr 2007 20:59:58 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84060 @ Eric, there are a number of ways to lay out your plan on paper or using Excel. One way is by using a timeline format that includes all cash flows into and out of your plan at the time they are expected to occur. You can also identify goals on the timeline along with the cash flows. If you want to get fancy, you can back test your cash flow timeline in Excel by applying historical investment returns to the money invested in the plan to see how your plan would have performed across various periods in history. Don’t forget taxes, inflation, and investment expenses. @ Eric, there are a number of ways to lay out your plan on paper or using Excel. One way is by using a timeline format that includes all cash flows into and out of your plan at the time they are expected to occur. You can also identify goals on the timeline along with the cash flows. If you want to get fancy, you can back test your cash flow timeline in Excel by applying historical investment returns to the money invested in the plan to see how your plan would have performed across various periods in history. Don’t forget taxes, inflation, and investment expenses.

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]]> By: Brian http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84046 Brian Tue, 17 Apr 2007 18:20:58 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84046 Great comments here, but keep in mind that a financial plan is about much more than investing. A CFP like Dylan will address all of your financial needs. Investing is a big part of it, of course, but insurance, debt and cash flow management, estate planning... it all has to be integrated to have a truly comprehensive plan. Nice primer, Dylan. Brian Bell, ChFC, CFP Great comments here, but keep in mind that a financial plan is about much more than investing. A CFP like Dylan will address all of your financial needs. Investing is a big part of it, of course, but insurance, debt and cash flow management, estate planning… it all has to be integrated to have a truly comprehensive plan.

Nice primer, Dylan.

Brian Bell, ChFC, CFP

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]]> By: RGalgon http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84044 RGalgon Tue, 17 Apr 2007 17:46:57 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84044 A great book for an introduction to all of this is the "The Bogleheads' Guide to Investing". I just finished reading it and was really impressed by its even-handed approach and sensible introduction to a wide range of topics for planning for, and investing in, your future. A great book for an introduction to all of this is the “The Bogleheads’ Guide to Investing”. I just finished reading it and was really impressed by its even-handed approach and sensible introduction to a wide range of topics for planning for, and investing in, your future.

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]]> By: DC Economist http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84042 DC Economist Tue, 17 Apr 2007 17:31:05 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84042 Eric, I believe we will have something for that this week. I am working on it as we speak, have been for awhile. Eric,

I believe we will have something for that this week. I am working on it as we speak, have been for awhile.

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]]> By: Eric http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84039 Eric Tue, 17 Apr 2007 16:37:50 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84039 Do you have any suggestions of what type of format or layout to use, or what a financial plan would look like? Is it just a list of goals or should it have calculations to go along with it - I'm thinking the latter would be more useful. I'm just trying to figure out how to put it down on paper, or excel, or whatever. Is there a form somewhere I could download and fill in or anything useful like that? Do you have any suggestions of what type of format or layout to use, or what a financial plan would look like? Is it just a list of goals or should it have calculations to go along with it – I’m thinking the latter would be more useful. I’m just trying to figure out how to put it down on paper, or excel, or whatever. Is there a form somewhere I could download and fill in or anything useful like that?

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]]> By: SBF http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84038 SBF Tue, 17 Apr 2007 16:27:38 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84038 <i>Now, after alot more education, I find myself really questioning whether I even want to spend the money I’ve budgeted for that one CD a month I have budgeted to buy.</i> I've had the same experience. Once I sat down and really thought about what I wanted my financial present and future to look like, the choices became clear. I no longer have the impulse to make random purchases because instead of feeling like I'm acquiring something, I feel like I'm losing out on future comfort and security! What a change! Now, after alot more education, I find myself really questioning whether I even want to spend the money I’ve budgeted for that one CD a month I have budgeted to buy.

I’ve had the same experience. Once I sat down and really thought about what I wanted my financial present and future to look like, the choices became clear. I no longer have the impulse to make random purchases because instead of feeling like I’m acquiring something, I feel like I’m losing out on future comfort and security!

What a change!

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]]> By: Liza http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84036 Liza Tue, 17 Apr 2007 15:55:22 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84036 "Revisit your plan regularly to see if it’s still working." This is one I think many people forget! Four years ago, as I was just starting to learn about investing, my partner and I sat down with a financial planner and selected mutual funds for our 401k rollovers and IRAs. A major move, a house, and a baby later (not to mention tons and tons of financial education!), we hired a planner to give us a "reality check." Since we've both been good about socking away 15% in our 401ks, his view was that we were in good shape -- except for 1 thing: Asset Allocation. He also recommended that we move to a slightly more conservative portfolio mix, shooting for 9% instead of the 11% returns we've been enjoying for the last few years. Some suggestions made sense to me, others I may pass on for now. But the exercise and reality check were educational and reassuring. “Revisit your plan regularly to see if it’s still working.”

This is one I think many people forget! Four years ago, as I was just starting to learn about investing, my partner and I sat down with a financial planner and selected mutual funds for our 401k rollovers and IRAs.

A major move, a house, and a baby later (not to mention tons and tons of financial education!), we hired a planner to give us a “reality check.”

Since we’ve both been good about socking away 15% in our 401ks, his view was that we were in good shape — except for 1 thing: Asset Allocation. He also recommended that we move to a slightly more conservative portfolio mix, shooting for 9% instead of the 11% returns we’ve been enjoying for the last few years.

Some suggestions made sense to me, others I may pass on for now. But the exercise and reality check were educational and reassuring.

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]]> By: DC Economist http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84033 DC Economist Tue, 17 Apr 2007 15:49:37 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84033 Groceries, that's funny. I always have a list for the grocery store, so I avoid buying any splurge items. I'm somewhat draconian in my budget. I agree. Having a plan provides direction and guidance. When I did not have one, I spent more money than I realized. Now, after alot more education, I find myself really questioning whether I even want to spend the money I've budgeted for that one CD a month I have budgeted to buy. It really does help stop impulsive buying. And I tell you what, my CD collection has gotten alot better in terms of quality. Groceries, that’s funny. I always have a list for the grocery store, so I avoid buying any splurge items. I’m somewhat draconian in my budget.

I agree. Having a plan provides direction and guidance. When I did not have one, I spent more money than I realized. Now, after alot more education, I find myself really questioning whether I even want to spend the money I’ve budgeted for that one CD a month I have budgeted to buy. It really does help stop impulsive buying.

And I tell you what, my CD collection has gotten alot better in terms of quality.

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]]> By: plonkee http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84031 plonkee Tue, 17 Apr 2007 15:21:22 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84031 "Don't plan on dying to young" Very funny, and so, so true on every level. “Don’t plan on dying to young”

Very funny, and so, so true on every level.

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]]> By: kev http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/comment-page-1/#comment-84030 kev Tue, 17 Apr 2007 15:05:39 +0000 http://www.getrichslowly.org/blog/2007/04/17/what-is-a-financial-plan-and-why-have-one/#comment-84030 Good advice. I'm amazed by how some people will take the time to sit down and plan out the following week's groceries, but will not put the same thought and effort into planning their finances. Good advice. I’m amazed by how some people will take the time to sit down and plan out the following week’s groceries, but will not put the same thought and effort into planning their finances.

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