Time to Face the Music
Once your financial advisor has completed the data gathering and analysis portion of the financial planning process, it's time to review the plan. Make no mistake, many people don't even begin things because they know the results will not look good. Is ignorance bliss here? It can't be; you can always improve your situation but you without a financial plan, you are aiming at nothing. And when you aim at nothing, you usually hit it!
Sitting down with your CERTIFIED FINANCIAL PLANNER™ and taking a look at your entire financial situation can seem daunting, but you don't have to cover all of the bases in one sitting. The best approach is to explore those areas in greatest need of attention, and go after the low hanging fruit first. In my experience, some of the biggest areas of risk for clients are the following:
- Goals are not clearly understood and defined
- Lack of consistent strategy across investment and retirement accounts
- High-fee investment products that are not aligned to financial goals
- Lack of adequate life insurance
Once you know where the problems lie, it's time to look at fixing those issues one-by-one.