Financial Planning 101

Financial Planning 101:

Develop a Roadmap to Help Navigate Life’s Journey

Most people think financial planning simply means investing money for retirement. And while it is a bit of that, it’s also a whole lot more. A comprehensive financial plan is like a personal financial roadmap, taking you from now into and through retirement, and leading you to all the destinations along the way.

The Roadmap to Financial Health

To successfully reach your financial goals, it’s best to plan the route you will travel. Where will you be stopping? Destination: college funding? Destinations: new career, beach home, awesome family vacation...? A sound financial plan can help you deal with the detours and construction sites along your route, providing backup so that your family can still reach its destinations if you lose your job, or something unexpectedly happens. The plan helps ensure your financial vehicle is fuel efficient. All these considerations go into designing your unique and personal comprehensive financial plan.

Do you need a lot of money?

No. It’s a common misconception that you need a lot of money to invest. You only need a little money to start; in fact, you can start an investment with as little as $50. Think of that sum as your little acorn. With rain, sunshine, and nutrients, that little acorn could potentially grow into a mighty oak tree. Next month, you give your investment another $50 (a little rain and sun), then maybe next year give it $200 for a couple months because you have some extra funds (this is the rainy winter). The oak is not mighty yet, but in time it may be.
Acorns that receive enough rain, sun and nourishment over the years may grow to become mighty. The same can be said about planning and investing. The financial roadmap is a wonderful tool: Just follow it, make necessary adjustments along the way, navigate through life’s detours, and you can reach your desired destinations. The roadmap prevents you from getting lost or finding yourself at a dead-end.

Do you need a financial adviser?

You probably have a much better chance of attaining your family’s financial goals if you have a good financial adviser working with you. Especially in these times of waning employment benefits and social security, we all need to plan for our own futures. No matter whom you choose, it is essential to have a financial advisor who you can trust, who is looking out for your best interests, and who will build a lasting relationship with you. Every financial advisor should offer an initial complimentary, no obligation consultation. This will allow you to choose the person that is the best fit for you. One thing that is guaranteed—life will change. Therefore, your financial plan will change. Having someone there to guide you every step of the way could be key to your potential success.

--------------------

Diane Sague Ehnes is a Financial Adviser with Waddell & Reed and can be reached at 503.238.6036 x203 or dsehnes@wradvisors.com. Waddell & Reed offers financial planning services in its capacity as a Federally Registered Investment Adviser. Please refer to the Waddell & Reed Financial Planning Advisory Services Brochure for a complete discussion of these services and the fees associated with them. For more information or a copy of the brochure, please contact Diane Sague Ehnes. Please consult your financial advisor prior to making financial decisions.