Financial Basics

Getting Organized

Take Control

Build Your Credit

Banking Basics

Taking the Next Steps

Determine Financial Goals

Creating a Budget

Building Your Career

Borrowing Basics

Investing for Your Future

Investing 101

Saving Strategies

Choose the Right Investment

Investing Online


Increase Your Earning Power

Tuning Your Career

Negotiating for Success

Changing Careers

Going Back to School

Starting Your Own Business

Smart Borrowing

Take Control of Your Debt

Paying for Major Purchases

Getting a Loan

Finance an Education

Managing Your Finances

What's Your Net Worth

Managing Daily Finances

Tax-Planning Strategies


Plan for Financial Success

Creating a Financial Plan

Achieving Short-Term Goals

Plan for Long-Term Goals

Retirement Planning Basics

Investing Wisely

Investing Considerations

What's Right for You?

Investing Techniques

Preserving Your Wealth

Reallocating Your Assets

Insurance Options

Wills and Trusts

Plan for Heirs

Gifting to Family & Charity

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Creating a Financial Plan

Henry Ford once said, "Obstacles are those frightful things you see when you take your eyes off your goals." When you create a financial plan, it's the equivalent of keeping your eye on the ball. You outline your assets, your needs, your goals, and match investments and financial vehicles to help you achieve those goals.

Three Components

A financial plan is generally comprised of the following three components:

  1. A personal profile. The names and dates of birth of everyone in your family, as well as anticipated dates for attending college, retirement and life expectancies
  2. An overview of your financial scenario. This includes your household income, debts, property and assets. You may also include an overview of your risk profile-how much risk you're willing to bear to achieve your financial goals.
  3. Financial objectives. These include buying a home, vacations, saving for college, retirement, or a second home.

Elements of financial planning
Once you have a basic roadmap of where you are currently and where you want to go, it's time to break down your financial plan into a series of tactical strategies. All of these concepts are designed to help you achieve financial security for the future, and ensure that your dreams become a reality.

  • Cut costs to create discretionary income. In order to invest, you need to squeeze additional money from your income each month. Sticking to your budget will help you do this.
  • Create an emergency fund. Most experts recommend you maintain between three to six months worth of income in an accessible account should you unexpectedly lose your job or become incapacitated.
  • Outpace inflation. You need to invest money aggressively enough to beat the effects of inflation over the long term. For example, if inflation is averaging 3% per year, your investments need to return at least that much for your money to increase in value.
  • Minimize taxes. Like inflation, taxes decrease the value of your income. That's why it's important to understand which investment vehicles are appropriate for which goals. For example, there are many tax deductible and tax-deferred plans available for individuals saving for retirement. No matter what the goal, always look to minimize taxes through tax-advantaged investments.
  • Diversify. A sound rule for all financial plans is to diversify your invested holdings. Spreading your assets among many different types of securities helps ensure you won't lose your entire nest egg in one poor investment.
  • Work with a professional. If you've never invested on your own, you may want to start out working with a financial planner. Check with friends, family, and co-workers for recommendations, and find someone with whom you trust and are comfortable discussing your financial matters.



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