Nicolette Financial believes that financial planning is the foundation for helping our clients make sound financial decisions that enable their financial goals to be met. A client’s financial plan is not a means to sell a financial product, but rather a formalized and ongoing framework that is used as a basis when making important financial decisions. 

(1) Financial Planning is Not Investing

There are many investment advisors who label themselves as financial planners. While an investment strategy is one component of a financial plan, making investment recommendations is not financial planning. For example, the most appropriate asset allocation means nothing if a person is wiped out due to inadequate insurance coverage.

(2) Effective Financial Planning Requires Frequent Communication

In addition to an individual’s personal financial situation, tax laws and other financial planning regulations change frequently. As such, frequent communication is essential to determine if changes to the financial plan are warranted.

(3) Effective Financial Planning Requires Depth of Knowledge

Since most financial decisions tend to be inter-connected, it is important that your financial planner have depth of knowledge or expertise. Advisors who are CERTIFIED FINANCIAL PLANNERS ™ tend to have the most extensive background and be the most qualified among all financial planning professionals.

(4) Financial Planning Should be a Proactive Endeavor

Financial planning is not a one-time event, but is an on-going process and your advisor should be proactive in helping you attain your financial goals. For example, as mortgage rates decline, a true financial planning firm will know whether a client should consider refinancing their mortgage and should proactively approach the client to do so. Also, as estate tax laws change, advisors should proactively contact those clients who may need to make changes to their estate plan.

 

Financial Planning is designed to increase the likelihood that you will achieve your financial goals.