Importance of a Personal Financial Plan

Years ago, the financial life of the average family was relatively uncomplicated. People worked for the same company most of their lives, lived a few years in retirement on Social Security and their pension, and passed their modest estate on to their children. However, increased longevity, changing demographics, and a more complex, dynamic financial world have changed all that.

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Consider these tough financial facts:

  • Many of today’s retirees will live 30 years or more in retirement – requiring far more financial resources to maintain their desired lifestyle.
  • Social Security and company pensions may no longer provide the majority of your retirement income.
  • Tax laws change almost annually.
  • Downsizing companies no longer provide “cradle-to-the-grave” benefits or job security. The average American changes jobs seven times in a lifetime, and millions are self-employed. This demands new approaches towards savings, retirement, taxes, and estate planning.
  • With couples having children later in life, many couples are “sandwiched” between paying for college and helping their elderly parents, while also trying to save for their own retirement.
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