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Why "Financial Planning" in 4 Charts

Why "Financial Planning" in 4 Charts

October 31, 2022

Creating and Implementing a Financial Plan can have a variety of benefits to people, both in the financial aspects and non-financial aspects of someone’s life.

But it can seem a daunting task to create the plan and follow it over time. Collecting the information, analyzing the numbers, projecting possibilities and staying committed to goals can feel like mission impossible.

Yet, by taking a step-by-step approach and understanding that it is a marathon, not a sprint, successfully following a plan can become a habit. And good habits can help people manage the concerns that they and worries that can keep them up at night.

The first Chart describes the various worries that Retirees had in the 5 years prior to their retirement. While different surveys over the years may have these in a different order, issue like these have consistently been what people are worried about as they face retirement.

This Chart represents their responses when asked if, upon reflection, they would have changed their financial habits during their working years to improve their current financial situation, half of retirees (50 percent) said yes (Figure 16). Retirees who had a financial plan, worked with a financial adviser on their plan, and had higher financial assets were less likely to agree they would have changed their financial habits during their working years.

When Fidelity published their Retirement Mindset Survey, the results were totally consistent with similar studies over the years – People with a Financial Plan feel more Confident, In Control and less stressed than those without a plan.

Finally, people who have a financial plan have reported the additional benefit of having Healthy Money Habits.

If you have some of these concerns but lack a plan to address them, let’s schedule some time to talk.