Financial planning is an ongoing process, during which new information and life events often change the course of your plan. The discussions that follow are based on Sara's life today, and the information that she provided. Some of the recommendations will be very specific, others more vague. This approach is based on the assumed evolution of her personal and financial situations.
Balance Sheet & Cash Flow
In Sara's case, it was critical to create a balance sheet — a snapshot of her wealth at a moment in time. The other important document needed was the statement of cash flow. The cash flow statement typically reflects a household's annual income less its discretionary and nondiscretionary expenses. As is often the case, many of your short- and long-term goals are dependent on your ability to effectively manage your cash flow. More>
Short-term Goals
The primary driver for Sara seeking advice is the need to figure out a plan for paying off debt, while anticipating taking on an additional car loan on an already stretched budget. Also, Sara would like to gain comfort with her savings and spending plan. However, she does not know what amount should be contributed. More>
Long-term Goals
Career and retirement goals go hand in hand. Sara knows she’s behind the eight ball on retirement and needs to play catch-up. Realizing there may be other options to continue earning some amount of money in retirement will lessen Sara's portfolio needs at retirement. Opportunities in retirement can eliminate or reduce the amount of withdrawals needed from savings and investments, allowing those accounts to provide further into the future. More>
