Future Navigations

Financial Planning is primarily integrating all the financial variables into a chart so that you can plot your course(s) to the successful accomplishment of your personal goals. Too many of us are flying blind and hopping for the best. Over 47% of us have saved/invested less than $25k for their retirement. They are either spending everything for today on self gratification or hoping the government will take care of us, similar to Europe. There are two clear trends over the last thirty years that will directly affect most of us with respect to our retirement. First, Congress has enacted several laws for the establishment of IRAs, 401ks, and Roth IRAs shifting responsibility of retirement on individuals. Also, we know that the future of Social Security & Medicare is tenuous at best with increased taxes and reduced future benefits. The second major trend over the same period is the termination of corporate pension plans which were too expensive to fund. Again, the burden has been shifted to the workers with salary deferral plans such as 401ks, 403bs, and 457 plans. Currently less than 11% of US workers are covered by corporate pension plans unless you work for the government. Whether you belong to the baby boomers, generation X, or generation Y, we all are members of the new YOYO generation: “You’re On Your Own” with respect to funding your own retirement.

Most of us are somewhere on our navigation toward retirement with a number of stops to make on the journey. Financial plans are not just for retirement, but to help us successfully get to all of the safe harbors we need to. Examples of some of the useful applications of planning include: reduction of debt, accumulating down payment for a house, financing college education, insurance needs analysis, purchase of significant asset such as a boat, long term health care, and an estate plan.

All financial plans start with the basic inventory of financial documents that we as individuals have control of. These source documents would include, but not limited to, tax returns, cost structure, personal investments, mortgages and other debt, insurance policies, and most important, your unique goals. Where available, plans can also accommodate inheritances, asset sales, and future cash windfalls or liabilities. Besides the personal variables, the external forces of taxes, inflation and government laws must be incorporated into the long range plan. These plans can be comprehensive or very focused on a specific need, such as college education. Most financial plans can be very detailed in their navigation and guide you each step of the way so that you can chart your progress and make the necessary corrections. Because most plans are composed of hundreds of variables, any which can change at any point along the course, it is important to be able to update the plans. That is why we encourage each of our clients to have their plans updated annually to mark course corrections, take advantage of opportunities, and / or rebalance their portfolios.

Financial Plans are a tool to help you mark your implantation, progress, and successful accomplishment of your goals. It takes dedication and perseverance. One of the most important examples would be to fully participate in your 401k plan and / or to fully fund your IRA or Roth IRA. These qualities will help you achieve your Quest for Financial Freedom.

Freedom from work

Freedom from want

Freedom from worry

 The Quest for College

Quest Financial Services would like to help public and private school students in Essex County with their quest for a college education. Read about our Quest for College promotion and guidelines.