Many people wonder whether a financial plan is worth it and whether these expenses are worthwhile, considering that there are free versions of financial plans available. The answer is yes, they are, if you’re doing it the right way.
First is simple and introductory, effectively trying to go ahead and establish a path right out of school or at the beginning of a career, where you’re trying to determine what it is that you want to do over the long term. Fairly regularly involves the elimination of debt, school loans, saving for a first house, and maybe getting married in the future. Some of those types of things.
And then there’s more of a standard plan, which is for mid-to-late-term professionals who are looking for more clarity on what it is that they are going to work on long-term. So what goals are you working towards? This one always comes down to like, ‘I’d like to retire, but I have no idea what that looks like.” It’s some foreign concept that exists way out in the future, but it's very unclear as to what it is. The thing that people generally look at is -that’s great that there's this goal of retirement, … there are going to be a lot of things between here and retirement that impact you. And that is going to have a great influence on your life. Having a conversation about those and thinking about things that aren't necessarily front of mind, is important as well - and that’s usually the standard plan.
Then there are very high-level plans that are aggressively sophisticated. Generally, dealing with larger estates or the sale of a business - things of that nature, where you start getting into complex tax planning and advanced succession plans, for example.
So, is a financial plan worth it? Absolutely—when it’s tailored to your stage of life, actively maintained, and designed to grow with you, it becomes one of the most valuable investments you can make in your future. Because it is active and ongoing, it is engaging. It is something you work on constantly, ensuring that you're on track on an ongoing basis.