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What exactly is a financial plan? Many industry professionals use these words, yet there is no governing body that defines them. I intend to use them in a way that’s meaningful to investors and savers.

Financial planning takes money management to new heights, determining how to best plan for your future while living the life you enjoy, today. The basis of your financial plan is your goals—your plans for retirement, saving for college, or even buying that second home. You’ll find that once you’ve set your goals and built a plan to deliver them, the burden of “Am I saving enough?” is lifted. You know you’re on the right track to financial freedom.

A comprehensive financial plan goes beyond saving and spending. Your plan should delve into each part of your financial picture: investment assets, retirement assets, insurance, tax planning and estate planning. If you’re not working on all of these areas, you’re not properly building and protecting your wealth.

Financial planning is for the long-term. Having a financial planner who knows you and understands your values, family history and life events can prove invaluable when it comes time to make impactful financial decisions. Your financial planner must provide you with the attention to detail that your portfolio deserves and ensure that all of your asset investments align with your goals.

An independent financial planner can give you an unbiased recommendation on planning, saving and preparing for your future. Your comprehensive financial plan should include recommendations on how much to save for each goal and where to invest it, how much insurance is appropriate for you at this stage of life, how to reduce taxes through tax-efficient investing and deductions, and how to best protect the wealth you’ve built with your estate plan.

Know what youre paying your financial planner and that he/she is working only for you. Financial professionals earn their income in several ways: fee-only, commission, or fees and commission. Fee-only means that the adviser charges you on an hourly, annual or asset-based basis for financial advice. In this case, the adviser has no reason to sell you a specific investment that may not be in your best interest. There may be some conflict of interest, though, when a financial professional earns a commission or referral fee. In this case, the adviser may earn a large fee if you purchase a certain security or investment vehicle.

You need a plan at every stage of your life. Whether you are in the earliest stages of wealth creation, building wealth in your hardworking years, or sustaining your lifestyle while protecting the wealth you’ve built, it’s never too soon or too late to start. Each stage of your life calls for a new plan—in your career, your personal life and your finances. Each “life event” brings with it new challenges and new goals—saving for college, a new home, life insurance and estate planning. Make sure you’re on track at all times by reviewing your financial plan annually.


If you’d like to know whether or not you are on track to reach your own financial goals, call (484) 875-3072 to schedule a comprehensive financial review.

PlumTree Financial Planning helps people get comfortable with their finances and make informed financial decisions by providing guidance on investments and tax, insurance and estate planning.


PlumTree Financial Planning
Locations: Malvern, Radnor, Bala Cynwyd, Philadelphia and Plymouth Meeting
Phone: (484) 875-3072
Email: bdandrea@plumtreefp.com
Website: www.plumtreefinancialplanning.com

Beth D’Andrea, CFP®

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