Six areas of personal finance to review

You may think financial planning consists of paying your bills every month. But it is so much more… real financial planning centers on the six key areas of creating a financial strategy that helps you build wealth and protects you from loss. Did you know that October is Financial Planning Month? It is, and therefore it’s an excellent time to consider whether you need to pay attention to these six key personal finance areas.1

1. Cash Management

This is a broad topic that can address many issues. One area is creating an emergency fund, which is money that’s set aside for unplanned expenses. Cash management also can include looking at your “sources and uses” of money. Are you able to pay your bills? Is your spending in line with your values? Are you saving for the future? Your habits now will have a lasting impact.

2. Investment Strategy

Concerns about an investment strategy (or lack thereof) is among the key reasons people start a relationship with a financial professional. When reviewing investment strategies, it’s critical to consider a person’s goals, time horizon, and risk tolerance.

3. Retirement Preparation

This is another crucial reason why a person approaches a financial professional. The chief concern for 49 percent of Americans is running out of money in retirement. The retirement preparation process reviews your current situation and helps you better understand your choices.2

4. Protection Strategies

This area looks at how you prepared for life’s potential financial risks. Protection strategies also can include health-care considerations. By the way, did you know that 44 percent of Americans cite “declining health” as their second biggest retirement concern?2 

5. Tax Management

Do you feel comfortable with current tax laws? Are you confident about your approach to tax management? Tax rules are constantly changing, and there is no guarantee that the tax landscape will remain the same in years ahead. Financial professionals often work with tax, legal, or accounting professionals when creating an overall tax management strategy.

6. Estate Strategies

How well you prepare today may help determine how you distribute your assets after you’re gone. Much like tax rules, estate rules are continually changing, and today’s landscape may change in a few years. Financial professionals often work with legal professionals when creating an estate approach.

It can be a challenge to feel confident making decisions in all six key areas of your financial life. After all, there’s a lot to learn, and you’re busy with your day job. How can I help?

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Citations: 1., October 2020; 2., May 21, 2019

After a successful career in high-tech, Sheila McGinn, CFP® followed her passion and became a fee-only Financial Planner, where she helps clients navigate complex financial decisions and reach their financial goals.

Disclaimer: This content is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. For advice specific to your situation, consult a financial planner, accountant, and/or legal counsel. Reproduction of this material is prohibited without written permission from Brightview Financial Solutions, LLC, and all rights are reserved.