Financial Planning for Families: The Big Picture Approach and Why it Matters
Creating a comprehensive financial strategy that protects and grows your family’s wealth
Do you picture yourself owning a new home, starting a business, or retiring comfortably? These are just a few of the financial goals that may be important to you, and each goal comes with a price tag attached.
Financial planning for families isn’t just about managing money—it’s about creating a roadmap that transforms your dreams into achievable milestones. Whether you’re just starting your career or approaching retirement, understanding the financial planning benefits can help you make informed decisions that secure your family’s future.
Why Financial Planning for Families Matters
A comprehensive financial plan serves as a framework for organizing the pieces of your financial picture. With a financial plan in place, you’ll be better able to focus on your goals and understand what it will take to reach them. The core areas of financial planning include:
- Investment Planning
- Tax Planning
- Estate Planning
- Retirement Planning
- Education Planning
- Insurance Planning
One of the main benefits of having a financial plan is that it can help you balance competing financial priorities. A financial plan will clearly show how your financial goals are related.
For example, how will saving for your children’s college education impact your ability to save for retirement?
Then you can use the information gleaned to prioritize your goals, choose suitable product or services, and implement specific strategies. Best of all, you’ll know that your financial life is headed in the right direction.
The Financial Planning Process: A Systematic Approach
Personal financial planning is a process that can help you target your goals by evaluating your whole financial picture.
Creating Your Comprehensive Financial Plan
Designing and implementing a comprehensive financial plan generally involves the following primary steps:
- Develop a clear picture of your current financial situation by reviewing your income, assets, and liabilities, and evaluating your insurance coverage, your investment portfolio, your tax exposure, and your estate plan
- Establish and prioritize financial goals and time frames for achieving these goals
- Implement strategies that address your current financial weaknesses and build on your financial strengths
- Choose specific products and services that are tailored to help meet your financial objectives
- Monitor your plan, making adjustments as your goals, time frames, or circumstances change
Understanding the Team Behind Your Financial Plan
The financial planning process is a large undertaking that requires several moving parts. This can involve a number of professionals, each playing a crucial role in your financial success:
Financial Planners typically play a central role in the process, focusing on your overall financial plan, and often coordinating the activities of other professionals who have expertise in specific areas.
Accountants or tax attorneys provide advice on federal and state tax issues, helping you navigate complex tax situations and optimize your tax strategy.
Estate planning attorneys help you plan your estate and give advice on transferring and managing your assets before and after your death, ensuring your legacy is preserved according to your wishes.
Insurance professionals evaluate insurance needs and recommend appropriate products and strategies to protect your family’s financial security.
Investment advisors provide advice about investment options and portfolio management, helping you build wealth over time.
The Value of Working with a Certified Financial Planner
While it is possible to build a financial plan by yourself, it would requires a lot of time, knowledge, and expertise in multiple areas. Working with a certified financial planner or other qualified financial professional provides several advantages:
- Objective analysis of your complete financial situation
- Professional expertise in complex financial strategies and products
- Ongoing monitoring and adjustments to keep your plan on track
- Coordination between different aspects of your financial life
- Access to institutional resources and investment opportunities
Staying on Track: Monitoring Your Financial Plan
Your financial plan shouldn’t be set in stone. As your life circumstances change, your plan should evolve to reflect new priorities, goals, and challenges. Regular reviews with your financial planning team ensure that your strategy remains aligned with your objectives.
Key life events that may require plan adjustments include:
- Marriage or divorce
- Birth or adoption of children
- Career changes or job loss
- Inheritance or windfall
- Major health issues
- Economic market changes
Finding the Right Southeast Financial Planning Firm
When selecting a financial planning firm, consider factors such as:
- Credentials and experience of the planning team
- Range of services offered under one roof
- Fee structure and transparency
- Client communication style and frequency
- Regulatory compliance and fiduciary standards
At NBC Securities, we understand that every family’s financial situation is unique. Our comprehensive approach to financial planning helps you see the complete picture while addressing your specific needs and goals.
Contact NBC Securities to start building your personalized plan today.
Frequently Asked Questions About Financial Planning For Families
Q: What is financial planning and why do I need it?
A: Financial planning is a systematic approach to managing your money that helps you achieve specific life goals. You need it because it provides a roadmap for making informed financial decisions, prioritizes competing goals, and helps ensure you’re prepared for both expected milestones and unexpected challenges.
Q: How much does financial planning cost?
A: Financial planning costs vary depending on the complexity of your situation and the services you need. Some planners charge hourly fees, others work on a project basis, and some receive compensation through product commissions. It’s important to understand the fee structure before engaging any financial professional.
Q: What's the difference between a financial planner and a financial advisor?
A: While the terms are often used interchangeably, financial planners typically focus on comprehensive financial planning covering all aspects of your financial life. Financial advisors may specialize in specific areas like investments or insurance. Many professionals serve in both capacities.
Q: How often should I review my financial plan?
A: You should review your financial plan annually or whenever you experience major life changes such as marriage, divorce, job changes, or significant changes in income. Regular monitoring ensures your plan stays aligned with your current situation and goals.
Q: Can I create a family financial plan myself?
A: While basic financial planning tools are available online, comprehensive financial planning often requires expertise in areas like tax planning, estate planning, and investment management. Working with qualified professionals can help you avoid costly mistakes and identify opportunities you might miss on your own.
Q: What documents do I need to bring to a financial planning meeting?
A: Bring recent statements for all accounts (bank, investment, retirement), tax returns, insurance policies, estate planning documents, pay stubs, and information about employee benefits. This comprehensive documentation helps your planner understand your complete financial picture.
This article is provided for informational purposes only and should not be considered as personalized financial advice. Securities and investment advisory services offered through NBC Securities, Inc., a registered broker-dealer and investment advisor. Consult with qualified financial professionals to discuss your specific situation and needs.
