Elements of a Financial Plan

Financial planning can include several items that are designed to plan for the future. There are a few of these items are common to all financial plans. A good financial planner will walk through each of these items with you and explain the importance of each. If any of these items are missing from the financial plan, be sure to ask your financial professional.

The first step to securing a plan is to cover where you are today. This includes your current income, expenses, liabilities, and assets. With this information, a financial planner can help to decide what tools he or she is working with. This information will help determine if there are behavior changes needed to secure your financial future.

Next, there will be a discussion about taxes. Through financial planning, you will be able to determine if you are able to take advantage of tax breaks, in order to invest more of the money you earn. This could mean pursuing investments, such as real estate, that let you write off the amount of interest on a home loan.

Investment portfolio management will also be covered in order to strike a balance between a proposed risk level and the associated return. Of course, the more risk an investor is able to take on the more return. However, through diversifying these investments, a financial plan can minimize the impact of a financial downturn.

Retirement planning is also important to ensure financial security in your later years. Without a plan, some will have to work well into their golden years. A financial planner will help determine how much will needed to be saved from each income stream today, in order to enjoy a comfortable retirement. Be sure to determine what type of lifestyle you are willing to have during these years. Once this is determined, the steps to reach this goal become clearer.

Estate taxes are also an important topic. This has to do with the movement of assets to family members, in the event of a death. For this, you will need to have an open and honest discussion about whom you wish to leave your assets to. Once this is determined a plan to transfer these assets to the beneficiary is determined, in a way that minimizes the amount that is taxed.

Budgeting can be sexy

Dianne Nice rounds up the best in personal finance, including why loyalty cards aren't rewarding for everyone

Why Democrats Should Change The Defense Budgeting Process

Rep. John Boehner has unwittingly opened the door for a sensible, pragmatic solution to defense budgeting: end the supplemental budgeting process. End the wrangling.

Need Budgeting Help? Watch 'The Joneses'

Are you looking for creative ways to reign in your spending? If so, here's a tip I never thought I'

County resident lambasts new codes court

When it comes to budgeting for a new codes court in Leavenworth County, at least one resident is saying thanks, but no thanks.

Response to Froma Harrop's column about budgets and tax hikes

Froma Harrop is either naive, ignorant or dishonest [Honest budgeting includes tax hikes, Opinion, July 28]. To pretend that she believes, By the way, their new health care-initiative was fully paid for, falls in the last category.