Comprehensive financial planning goes way beyond essential financial planning, which looks at your current financial situation and the projected financial state in the future. It involves a thorough assessment of your financial situation against life events. This evaluation projects the best position in the future and makes a portfolio that would help actualize the plan. Comprehensive financial planning also considers possible possibilities and potentially derail the project.
Goals attainment
The primary purpose of making a comprehensive financial plan is to map a plan for the future one desires to achieve. This spans a child’s education to retirement planning and ultimately estate planning for posterity. Working with a financial adviser is paramount
to accomplish the laid-out plan.
The primary considerations that ought to feature in a comprehensive financial plan include
Retirement:
One cannot work forever. It is good to continuously earn an income even when you stop working to maintain the same quality of life.
Risk Management:
This entails planning for the unseen. Accidents or deaths may happen, derailing a financial plan if not accounted for. Having life, disability, accident, and property coverage is essential to consider.
Long term investment:
long term investment entails working on low-risk investments with the highest yield potential over the long term.
Estate planning:
In the event of your demise, before the term of the investment plan ends, it caters to the estate’s protection and makes sure the heirs take it up.
Working with a financial planner is an ideal way of safeguarding your future and that of your dependents. This ensures that as you work hard, your investments are also protected and help you even when you are not actively engaged in work.
Dr. Diana Rangaves, PharmD 