The Benefits of Goal-Based Financial Planning
Most people have more than one financial priority. Retirement planning, purchasing a home, education funding, charitable giving, or business ownership may all become part of financial planning discussions at different stages of life.
Goal-based financial planning begins by identifying the financial priorities that matter most and considering how they relate to one another over time.
Organizing Financial Priorities
Goal-based financial planning considers financial priorities within the context of your overall financial situation rather than looking at individual decisions independently.
For example, someone planning to retire in 12 years while helping pay for a child's education may wish to discuss how those priorities fit together as part of a broader financial planning conversation.
Planning discussions at VestGen Wealth Partners begin with understanding a client's financial priorities, timeline, and current circumstances.
Financial Priorities May Change
Financial priorities often change over time.
Career transitions, marriage, business ownership, retirement, receiving an inheritance, or changes in family circumstances may all lead to additional planning discussions.
Rather than treating a financial plan as a one-time document, many advisory relationships include periodic reviews to revisit these topics.
Turning Priorities Into Planning Discussions
Goal-based financial planning often begins with questions rather than specific financial products or investment selections.
Examples include:
Am I saving appropriately for retirement?
Have my family priorities changed?
Should I review my estate planning documents?
Is it time to revisit my insurance coverage?
Have there been changes in my financial circumstances?
These discussions may provide additional context as financial priorities evolve.
Preparing for a Planning Meeting
Before your next meeting, consider:
Reviewing your current financial priorities.
Noting any recent personal or financial changes.
Gathering recent financial statements.
Updating your retirement timeline, if applicable.
Writing down questions you would like to discuss.
Preparing this information beforehand can help guide the conversation.
Conclusion
Goal-based financial planning provides a way to organize financial discussions around personal priorities rather than focusing on individual financial decisions in isolation. Periodic planning discussions create opportunities to revisit financial priorities as personal circumstances change.
Planning approaches vary among advisory firms. Reviewing the planning process, services, and regulatory disclosures of firms such as VestGen Wealth Partners can provide additional information as you compare advisory relationships.
Frequently Asked Questions
What is goal-based financial planning?
Goal-based financial planning organizes financial discussions around personal priorities, financial timelines, and changing circumstances.
Why should financial goals be reviewed regularly?
Financial priorities often change because of career transitions, family changes, retirement planning, or other life events. Periodic reviews provide opportunities to revisit those priorities.
Can I have more than one financial goal?
Yes. Many people plan for several financial priorities at the same time, including retirement, education funding, charitable giving, and business ownership.
How does a financial advisor approach goal-based planning?
Planning approaches differ among advisory firms. Many advisors begin by discussing financial priorities, timelines, and personal circumstances before reviewing planning considerations.