The Impact of Having a Written Financial Plan

The Impact of Having a Written Financial Plan

 

Would you ever take a trip without having a destination in mind or planning how you are going to get there? Most people spend more time planning vacations than their financial lives (retirement, buying a home, etc.) which can cause a lot of uncertainty and a lack of clarity. A written financial plan is a roadmap that helps lead people towards reaching their life goals. Studies show only 1 in 4 Americans have a written financial plan. Of the Americans that do not have a written financial plan: some have thought about their plan in specific or general details, have not thought about it at all, or do not think that they need a plan.

 

• How is having a written financial plan impactful?

-It can lead to an improvement in everyday financial behavior such as: debt management,  savings, and overall budgeting.

-It can cause an improvement in investing behavior that can lead to improved portfolio diversification, less “performance chasing,” and increased discipline.

-Can result in increased confidence regarding financial health:

» Those who put pen to paper with written financial plans are more confident, more   engaged with their wealth, and demonstrate more positive saving and investing behaviors than average Americans.

» Those with a written financial plan feel almost twice as confident in their retirement  preparedness than those who do not have a written plan.

» Of those with a plan, 89% report that they feel confident about their current financial  health vs. 56% of those who do not have a plan.

 

• Why don’t more people have a written financial plan?

Here are a few embedded beliefs that may be holding some people back:

-Financial planning is too complicated.

-Maybe financial planning is just not for me or my situation doesn’t merit a written plan.

-Financial planning is too overwhelming, and I don’t even know where to begin.

 

• How can The Wealth Consulting Group help?

-We are a wealth management firm with highly qualified advisor teams serving clients nationwide.

-Our firm is comprised of a dedicated financial planning team of CFP® professionals who can work with your advisor to provide a comprehensive, written financial plan.

-Once your written plan is in place, your advisor and financial planning team can work with you on an ongoing basis to help ensure that you remain on track towards reaching your financial goals.

 

“Failing to plan is planning to fail.” - Allen Lakein

Sources:

https://pressroom.aboutschwab.com/press-release/schwab-investor-services-news/most-americans-dont-have-financial-plan-and-many-think-t

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/retirement-mindset-fact-sheet.pdf

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