Putting your financial plan, or statement of investment objectives, on paper is a necessary step in moving toward your financial goals — and, it's where your financial adviser can be of enormous help. A plan establishes a benchmark against which to measure progress toward your goals, but the contents of your plan aren't set in stone. Most people's financial plans evolve as their financial situation or their priorities change.
Although the contents of your financial plan are highly personal, there's a standard format your adviser uses to help you create a plan. A formal plan includes:
A statement of your specific
goals
Your timeframe for reaching those goals
Your current financial situation, including your tax situation
A summary of your current investments, including taxable accounts and retirement savings plans
Your risk tolerance
Your need for liquidity, or available cash
Any special concerns that affect your investment choices
Working with your adviser to make the plan as precise as possible lays the foundation of your working relationship.
