How a [small-caps]Certified Financial Planner[/small-caps]^® Professional Can Help You Meet Your Goals

In an interview with Jason Clark, a MissionSquare [small-caps]Certified Financial Planner[/small-caps]^® professional, we gathered answers to commonly asked questions about saving for the future and the role it could play in your financial planning strategy.

What are the biggest financial issues that people face today?

There is no one answer, as everybody has a unique financial situation. Regardless of the issue, a financial goal plan brings into focus your priorities and concerns and can help you better achieve your goals.

What’s included in a personalized financial goal plan from a CFP® professional?

A personalized financial goal plan incorporates the entirety of one’s financial picture — goals, concerns, expectations, net worth, savings, debt, and investments — to paint a probability-of-success picture. More than a retirement calculator, a financial goal plan projects how one area connects with others and the effect one move can have on your entire situation.

If someone has multiple financial goals — such as paying down credit cards and student loans or saving for a child’s education, a home, and retirement — how should they prioritize them?

It greatly depends on the amount of free cash flow available. A general rule is to first look at the goals you want to achieve, such as saving for retirement, and then consider saving for other goals, such as college. A good question to ask yourself is, “Who will pay for my retirement if I don’t?”

Retirement is a long way off for those in their 20s and 30s. Why should they care about retirement now?

The number one reason is to take advantage of time. For all the things we’re unable to control, most of us can control this. The earlier you start saving, the more time you could have to accumulate wealth. Remember, you can always temporarily reduce or stop your savings plan. However, it’s difficult to make up for lost time on the potential interest you may have earned if you were saving all those years.

What simple steps can people take to better their finances?

One step that can help you better understand your finances is to track your savings and expenses. You should track everything you spend. This will provide invaluable insight into your habits and patterns and help shed light on ways in which to better save.

Disclosure

^*Individuals with account balances of $100,000+ can receive a personalized financial goal plan.

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