What Is Financial Planning?
To have financial success, we each need a game plan. In life, we pass through several phases, each with different financial requirements. For instance, the financial needs of a young married couple are not the same as a single person and are not the same as a retired couple. Continuous, long-term planning is essential and can help you reach your goals. Typically, there are three basic financial steps most people take in life. They include:
Wealth accumulation
The first step of wealth accumulation is the building of a solid, diversified financial foundation to expand over time. During this phase, allocation of money for a home, investments, life, durability, insurance and educational expenses are coordinated with tax planning strategies to ensure that current and future income is utilized effectively.
Wealth conservation
The second step of wealth conservation includes a variety of investment strategies and further diversification. This step is designed to preserve and invest assets to help ensure adequate fund for current living expenses and future retirement needs.
Wealth distribution
The last step is wealth distribution. This step is about the proper allocation of assets to heirs. Good estate planning provides for the orderly transfer of assets while avoiding unnecessary tax burdens.
In addition to the complexities and changing priorities that occur over a lifetime, a financial plan is also affected by economic conditions, taxes and inheritance laws. Massey Financial Services will work closely with your legal and tax advisors to design a customized plan to help you develop a long-term financial strategy for your individual needs.