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Thomas M. Geier, CPA, CFP®, PFS

financial planningAsk people if having a well-thought-out financial plan is a good idea and most will agree. However, ask them if they, themselves, have one, and the answer is usually the opposite. Why the disparity? There are many reasons. The time commitment and the cost of the plan are two common explanations. Dig deeper and you find fear of a process that doesn’t sound fun, seems complex, and possibly reveals bad news. A good way to help you embrace the financial planning process is to make it simpler and easier to take the first step. Start by understanding that financial planning is really only two things: managing your risks and managing your assets.

What Is Risk Management?

Risk management means looking at the “what ifs” of the unexpected. What impact on your life or your family would a medical problem, a death in the family, loss of a job or income, a fire, a theft, or car accident have? Most people mitigate these types of risks with insurance. Homeowner’s insurance will help rebuild in case of a house fire or flood. Life insurance will replace income earnings from the loss of a loved-one, medical insurance for illnesses.

What Is Asset Management?

Asset management means identifying and growing your assets to meet certain goals. This involves investing, income taxes, charitable contributions, education, retirement, and transfer of the estate. Each of these areas can become very complex and detailed based on each person’s circumstances, but overall, the general theme is to have a written roadmap of where you want to go and ways to monitor if you are getting there.

The Financial Planning Process

How should you get started on the financial planning process? Take a look at the two areas of financial planning listed above and see if there is a subject matter that most interests you. Begin there. Maybe your family now has a new baby and you are concerned about providing for them if you are unable to? Maybe you have questions on long term care in case of incapacitation? Did you just start a new job with new 401k possibilities? Receive an inheritance? Need a budget?

That one issue is your opportunity to start a conversation with a qualified financial planning expert. Determine to resolve that one problem. Once you get started, the rest of the financial planning areas can be attacked as you get more comfortable with the process. You and your planner will be able to prioritize the areas that are most impactful to your situation.

As is usually the case, a comprehensive analysis would be the best approach. Gathering all of your data at one time and examining your entire financial horizon would be most efficient and worthwhile. However, taking one step at a time will also get you there.

Working With Geier as Your Financial Planner

Don’t be intimidated or reluctant to discover the benefits of a financial plan. Each area you cross off the list as accomplished will move you forward to achieving a sound financial future. Go ahead and take that first step.

Please feel free to call Geier Asset Management if you have any questions about financial planning. We can help you get started on the process.


© Geier Asset Management, Inc. September 2016. Thomas M. Geier is a Vice President of Geier Asset Management, Inc., a Registered Investment Advisor. The above blog reflects the opinions of Mr. Geier and not necessarily the firm. Any advice given is general in nature and investors must consider their own individual circumstances. Past performance is no indicator of future performance. The firm makes no warranties or representations of any kind relating to the accuracy or timeliness of the information provided.