Planning for Your Future

“An hour of planning can save you 10 hours of doing.” ˜ Dale Carnegie

When it comes to saving money, planning is the best approach. Yet only 33% of Americans have a written financial plan, according to Schwab’s 2021 Modern Wealth Survey.  Over 40% said they didn’t have enough money to make a plan worthwhile. The rest said it was too complicated, or didn’t have time to develop a plan.

Does Financial Planning Really Help?

Yes! A financial plan can typically help you identify your personal goals and how much time you will need to reach them. Once you have a comprehensive plan, you can better view how to reach your financial goals.

Having a written financial plan is not just about investing. It offers a road map to financial stability, security, quality of life, and peace of mind. It gives you a measurable goal to work toward. With a plan, you are able to track your progress and make adjustments to help overcome obstacles. A plan helps to prioritize your goals and reduces uncertainty about your decisions.

To start planning, you don’t necessarily need large sums of money. Likewise, early planning can have a profound impact over time by improving saving and budgeting habits. A written financial plan can lead to both good investing habits, and healthy money habits. In fact, research shows that planning supports sound money habits.

A financial plan – saving money you will need in the short term and long term – helps create a proper investment portfolio for your overall needs. Using your plan as a road map allows you to make thoughtful investing decisions.

Why Consider a Professional Financial Planner? Managing Director of Schwab Center for Financial Research, Rob Williams explains:

“Research has shown that households that work with a professional financial planner were more likely to make better financial decisions than those without a planner, taking into account portfolio risk levels, savings habits, life insurance coverage, revolving credit card balances, and emergency savings.

In a study published in the Journal of Financial Planning, David M. Blanchett, Ph.D., CFA, CFP®, used six rounds of the triennial Federal Reserve Board’s Survey of Consumer Finances (from 2001 to 2016) to examine the results achieved by people using four information sources: financial planners (defined as advisors who provided more holistic services); transactional financial advisors (such as a banker or broker); friends; or the internet.

‘Households working with a financial planner were found to be making the best overall financial decisions, followed by those using the internet, while those working with a transactional adviser were making the worst financial decisions,’ Blanchett wrote.”

In conclusion, for successful investors, planning is the foundation on which to build. Having a written financial plan helps you to identify and ultimately achieve your goals, live out your dreams, and establish your legacy. In addition, it improves confidence in your financial stability, relieves stress, and may result in more constructive financial behavior.

Madison takes a holistic look at the needs of our clients, well beyond simply products and portfolios. At Madison, we have CERTIFIED FINANCIAL PLANNERS™, Chartered Financial Analysts, multiple MBA’s, and an attorney on our team. We apply our ample knowledge and extensive experience to your benefit. Our professionals deliver objective, quality customized advice to help successful people make smart decisions with their money. If you are interested in planning for your future, give our wealth advisors a call.

Important Note: This material is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. The opinions expressed herein are those of the named advisors at the time written.  Actual economic or market events may turn out differently than as presented. © 2022 Madison Wealth Management