Financial Planning Pays Off

 ”If you don’t know where you are going, you might wind up someplace else.” – Yogi Berra.

An article at InvestmentNews.com discusses the results of a survey of more than 3,000 individuals, which was conducted this past summer. In my opinion, the results are striking, and represent a ringing endorsement of the need for comprehensive financial planning, which includes budgeting, insurance needs analysis, tax planning, investment analysis and recommendations, retirement planning and estate planning.

The survey divided the respondents into three broad categories: the self-directed investor working without a planner, those working with a professional adviser but without a comprehensive plan and those actively engaging in the financial planning process with a financial adviser.

Forty-six percent of self-directed investors said they were prepared for retirement, compared with 60% of the advice-supported group and 78% of those with a comprehensive plan.

Eighty-eight percent of individuals that were working with a financial adviser to develop a comprehensive financial plan felt they had a clear financial direction.

The comfort level of those with a financial plan was calculated at being 50% higher than those survey respondents who did not have financial support.

These results confirm why it is strongly recommended that you should have a comprehensive financial plan. For a detailed discussion, see Why You Need a Financial Planner.

photo credit: jsorbieus