Whether it is a short or long-term financial goal, you need a plan to help you get there. A financial plan is not a fixed, set in stone plan, however—it changes throughout your life so make sure that you know the proper steps to take and when it is necessary to update your plan and change course. Your expert in estate planning in Washington, DC and Northern Virginia, AOG Wealth Management, shares how you can make an effective financial plan with these steps.
- Establish Your Goal. This forms the foundation of the planning process itself. Why do you save and invest your money? By clearly identifying what you want to achieve, you will be more focused and motivated. It also officially kick-starts your financial journey with a definite vision of the end results.
- Collect the necessary data. It will be difficult to reach your financial goals if you do not have the relevant information at hand. Having the applicable data helps you develop strategies that meet your specific financial plans. If you are gathering data for a retirement plan, be sure to understand your annual income, savings rate, and number of remaining years until you are due for retirement. It also pays to learn how much you have saved to date and how much you will save in the future.
- Analyze the information. Now that you have the necessary data, it is time to analyze it. This helps you arrive at basic assumptions. Compute your finances and check if the numbers are enough to accomplish your goal. Most often, your initial assumptions will not cut it. However, this allows you to start developing alternative solutions that help you get the amount that is right for you.
- Develop your plan. How can you increase your nest egg to reach your financial goal? This means creating a plan that covers all the numbers, variables and other essentials. It also involves devising alternate strategies if the first ones do not suit you. It is essential for your plan to evolve with your needs while remaining within your capabilities and risk tolerance. If you are having trouble with this step, turn to AOG Wealth Management. We are not just your expert in tax planning in Washington, DC and Northern Virginia. You can also turn to us for effective strategies for your financial plan.
- Execute your plan. This may be the most difficult step in your financial planning. You will need discipline and motivation to make it happen. This does not mean you start when you’ve accrued a significant amount of savings or have a highly advanced investment strategy. Depending on what you can come up with, you can start with a few dollars and work your way up.
- Monitor the plan. You will most likely experience big changes in your life (baby, job loss, relocation, health issues, etc.) or need to make complex financial decisions, all of which can affect your financial plan. That is why you should tweak it or update it every now and then to adapt to new situations.
Turn to AOG Wealth Management for financial planning in Great Falls, McLean, Reston and all of Northern Virginia. We will help you achieve your financial goals through our professional team and quality solutions. Call us today at (866) 993- 0203 or fill out this form to schedule your free financial consultation.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.