Understanding the Seven Pillars for Financial Planning


1. Retirement Income Needs – The number one question people ask is “How much do I need to retire?” This is a difficult question to answer and there is no magic number – like you can retire when you have $1 million. It is important to understand your assets and how much income they can produce for you in retirement

2. Expense and Debt Management – To understand income needs it is important to understand how much you spend. Having a budget also will help determine your retirement income needs. Keeping expenses and debt levels low will make it much easier to retire.

3. Tax Planning – At the end of the day it is not about what you earn but what you keep. Tax planning provides a better potential return on investments and makes it easier to meet your retirement income needs.

4. Investment Management – Managing investments goes beyond picking an allocation or investment. It also means an asset location to help reduce expenses and taxes to give your portfolio a better chance for growth.

5. Risk Management – We know that life happens. Along the way, there will be things that occur that are not planned or that you cannot control like a disability, lawsuit, or premature death. Proper planning will help reduce the chance you are impacted by an event beyond your control.

6. Estate and Legacy Planning – We all want to be remembered and leave something behind for loved ones. Proper planning helps ensure your goals are met and can position your loved ones for success.

7. Distribution and Income Sources – Once you retire you will need to figure out where your paycheck will come from. Proper planning can create multiple income streams and reduce taxes to help achieve your retirement income needs.

Financial planning is important at all stages of life and we are here to assist you, whether it is about buying a home, starting a business, or retiring. Feel free to contact us for a complimentary consultation at financialplanning@bfsg.com.

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