Next week the National Football League will hold their annual Draft in Philadelphia and NFL Teams have been diligently analyzing all the prospects entered in the draft in hopes of building the best team they can. The NFL Draft is the key to building a successful franchise and is an opportunity for teams to acquire new talent and fill spots where they can use improvement.
Building a team is a lot like building and managing a financial plan. It is not about focusing on one element whether it be retirement or investments, but more focused on all aspects of Financial Planning. Although having a star Quarterback helps with the success of a team, it’s more about the entire team and how they all work together toward that one common goal “The Super Bowl.” In Financial Planning, the key is “Financial Independence” and having a plan to accomplish your goals. Having a plan not only gives you a roadmap of what you need to do to be successful, but also peace of mind knowing that goals can be achieved.
Like an NFL Team, we broke the different aspects of Financial Planning into 3 categories (Offense, Defense, & Special Teams) and provided some questions you should be asking yourself about your personal financial plan.
- Retirement – Are you taking advantage of all available Retirement Vehicles whether it be 401(k), 403(b), IRA, SEP IRA, Roth IRA, etc.?
- Investments – Is your portfolio risk aligned with your financial plan? If not, what changes need to be made?
- Taxes – Did you just have a hefty tax bill and are wondering what you can do now to mitigate next year’s bill?
- Insurance - Is your family sufficiently covered from a Life, Disability, Liability, & Long Term Care Insurance standpoint?
- Estate Planning – Do you have an Estate Plan (Wills, Powers of Attorney and Trusts)? If so, when was the last time it was updated? Does it align with your current intentions?
- Charitable Giving – Are you charitably inclined? If so, are you giving in the most tax-advantageous way?
- Financial Freedom - Are you on the right path to achieving your goals given what you are doing today? If not, what adjustments need to be made?
This is a great time of year to consult with your planner (coach), take a look at your finances (team), see where there are holes in your plan (roster) and make changes if necessary.