Things to consider when developing a financial plan

 

 

THINGS TO CONSIDER WHEN DEVELOPING A FINANCIAL PLAN

 

Wealth management is about being proactive, not reactive. It’s difficult to predict what may happen in 10 or 20 years. By remaining conscious of the assumptions we make as we develop a comprehensive financial plan, however, we are better able to prepare for the future.

 

 

 

 

As we work with you, we will incorporate conservative estimates of the factors listed below and reconsider those projections as circumstances change.

 

Inflation

When projecting your income requirements and your investment return, it is crucial to factor in the rising costs of goods and services.

 

Taxation

Once you stop earning a salary, the amount you pay in income taxes will likely decrease. Other taxes (such as property, estate, and business taxes), however, must still be kept in mind.

 

Medical care

Most people do not want to think about how much they may need to spend on medical care as they age. In the U.S., the cost of health care has increased at a faster pace than inflation.

 

Portfolio adjustments

As people age, it’s important to adjust their target risk and allocate assets appropriately.  An experienced financial advisor can help you minimize losses during market disruptions.

 

Retirement projections

As medical and technological breakthroughs extend our lifespan, many Americans must reconsider when to begin retirement. The prudent investor plans for a retirement that may last as long as their years of employment.

 

Projected income needs

Today’s assumptions about your estimated withdrawals and contributions may be inaccurate.

 

Social security

This essential component of your retirement income will vary depending on when you begin to receive distributions. Deciding when to start drawing on social security could be the most important decision that advisors and clients make.

 

Return on investments

No one can predict how the stock market will perform. While we want to be optimistic in our assumptions, we typically build conservative estimates of return into our projections. This helps you prepare for varied market conditions.

 

Cahill & Associates Financial Services, LLC 75 Berlin Road, Suite 110, Cromwell, CT 06416 | P860.635.4800 | F860.635.4572

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.