Creating a financial plan sounds like a daunting task. It absolutely isn’t. A financial plan is a plan about how you want to live your financial life. In other words, what plans do you have in life and how much money do you need for them? Making a financial plan as a woman, read how to get started in this article!
This article was written by Nihal Vogels, owner of Pie at Nihal and financial advisor affiliated with elfin.
What does a financial plan entail?
You prepare a financial plan for “yourself and/or your family/partner.” The idea is to gain insight, overview and future perspective. Just shouting that you don’t have a pension won’t help you in retirement. Calling out that you don’t have a pension, knowing how much retirement income you need and working on that today is what you want. Taking action is important for your future. Making a plan for your dream life.
Help with a financial plan
That action mode is incredibly important but also exciting, because you’re going to bare your bottom. You can create a financial plan yourself, or you can hire a financial planner to do so. A financial planner is affiliated with the Federation of Financial Planners, a professional association for (certified) financial planners. You don’t become one overnight, because you have to meet strict training and education requirements.
Financial planners look at your bigger picture: they analyze your current financial situation, discuss your goals and dreams, and create a plan to make your dreams a reality. The title financial planner is not protected, so it is important to pay attention to the seal of approval: CFP (Certified Financial Planner), which is issued by the professional association. An independent financial planner compares multiple providers to arrive at an appropriate recommendation. If someone wants to move you very much toward a specific financial product, it is important to be alert.
For advice on specific financial (more complex) matters such as mortgages, loans and pensions, your financial advisor needs a Wft license. In the AFM’ s licensing register (see “Find a specialist”), you can check whether a financial services provider meets these requirements.
4 crucial questions in your financial plan
Okay, making a financial plan is important for your future. Financial planning means making financial decisions, such as looking at income, delving into investments, saving for the future and allocating your money for your dreams. If you create a financial plan the right way, you can ensure that your money continues to grow and you have financial security for the future. A good financial plan includes the following:
- Who are you? What do you do in daily life, how was your financial upbringing and what do you consider important within your family/life?
- What would you like advice on? What financial questions, desires or uncertainties do you have? Is something bothering you or lying awake about something?
- How are you doing financially? What comes in and what goes out? What if you retired yesterday? Or became unemployed yesterday? Or becomes incapacitated yesterday? Or died yesterday? In all these situations, how do you leave the people you love? How do you want to manage your financial situation for yourself and those around you?
- And what if you are currently less fortunate financially? Then it’s always smart to consider what financial steps you need to take to achieve your goals in the future, regardless of your situation now. That may be by looking at tax or financial options, or you may need financial products. Think of asset managers, insurance, mortgages, etc.
Preparing for a financial interview
A conversation to arrive at a financial plan requires good preparation! So consider the following question “What should my financial life look like and why?”
Want to get started on a financial plan yourself? Of course you can. At Elfin, you get help understanding your finances and plotting your dreams and goals into concrete amounts. In addition, you can start thinking about the 4 questions I mention above. The more concrete, the better. Do you need help from me, in creating a financial plan? Check out my page and get in touch, a first meeting is free for Elfin women!
