Do you think financial planning is essential and wise? What started you into the process of financial planning?

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We started cause we don't want to eat dog food when we retire.

Include food storage in your plan and not the dog. GoldenLion 16 months ago .

Financial Planning is essential and wise. But you must use the new approach to financial planning and not the old. Everybody needs some form of financial planning.

Some need all aspects of the process and some may just need one or two elements. Financial planning is not just for the wealthy anymore, but the more money you have the more you can benefit from a plan. You should not confuse what stocks to invest in or what you investment portfolio should look like as financial planning.

It is not. That is just investment planning. What is the difference between the new approach and the old approach.

Under the old system, you had a set of goals you wanted to reach, you went in to see the planner and asked him to design a plan to reach those goals. But, most of the time, before the session was over, your goals were not goals anymore and had been changed completely. Example: You come to the planner with goal of having $1,000,000 by the time you are 65.

You are 45 now. You discuss with the planner that you feel a fair rate of return over 20 years is 5%. He tells you it will take $28,802 a year for 20 years to accumulate one million dollars.

You are shocked. You don't have $28,802 to set aside each year. So one of three things has to happen.

You change the goal; (lower it) you add more years to the accumulation phase, (25 years instead of 20) or you take more risk, (maybe try to get 8% instead of 5%). So the old method of goal setting before you see a planner almost always never works anymore. Secondly, once you decided on a plan and he prints it and gives you a copy, the plan is obsolete as soon as you walk out his door.

The plan is a snapshot in time. It is correct only for the moment, then it is wrong. Interest rates, tax rates, inflation, stock market rates, your ability to work, income, all are not set in concrete.

They change. Those changes are not reflected in the plan. So you must keep going back year after year at added planing expense to adjust the plan.

And there is still not guarantee you will reach your goal. Under the new approach there are no goals. You strive to accumulate as much money as possible.

You start at what you are comfortable with and build from there. The Financial Planner is the Macro Manager. He coordinates the Micro Managers, (Broker, Life insurance agent, estate attorney, accountant, banker, real estate agent, casualty agent.

) In my experience as a planner, these people never talk to each other and almost always say something like "Who told you to do this? " Because they don't see the whole picture, they actually stand in the way of having a working plan. Secondly, the plan is a living plan.

You don't have a 100 page print out. You have access to a web site where you can access your plan as many times as you want, and print the pages you need. But, the plan on the web site is constantly adjusting to changes in interest rates, market rates, inflation, taxes.

It is not fixed. It updates constantly. As Guybee said in his answer, a planner should help you think through the issues and work with you to create a living financial plan that will give you a better chance of success.

I have a better idea. Save your money. GoldenLion 13 months ago .

$3 million is the preferred retirement amount. GoldenLion 13 months ago .

OrWork until your 72 GoldenLion 13 months ago .

The investment options are getting more and more complicated. So for someone who does not want to deal with those issues, FP is a necessity. FP has several definitions - it can be planning (figuring out the best strategy to reach retirement financially sound, it can include estate planning, income tax planning, business planning, risk management.

There are many facets. The more money someone makes, the more likely they are to need some help sorting through the issues and the options. It is important to not make buying financial products the only outcome from the planning.

I recommend a person really think through their goals and long term needs before they engage a planner. It is best to have a clear picture of what you really want to do. A planner should be able to help their client think through these issues if they are having problems.

Hope this helps.

I think most of the financial strategies fall to understand the bond, stock, and commodities market. Without an understanding of commodities, why companies earn money, and factors affecting growth, financial strategies will be probabilities and trends. GoldenLion 16 months ago .

There is speculating and investing for the long run. Most people have no idea how to discern the difference.

It is easy. Study how companies earn money and focus on values based on this fact GoldenLion 16 months ago .

Markets are investing - stocks are speculating. Too many things can go wrong with a company with little or no warning. I believe in markets over individual stocks.

Read Fama and French .

" "Financial Planning for a Sizable Windfall" "Is there an advantage to doing your financial planning at a bank like harris or is it better to go with edward jones or. " "What does it take to get started in a career as a financial/estate planner? " "I'm looking for a book on financial planning by Svenson (Svensen?

). Anyone know the title?

Who is the Managing Partner of GrowthField Financial Services.

Is there an advantage to doing your financial planning at a bank like harris or is it better to go with edward jones or.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.