6 Reasons Why You Need a Financial Plan

Wherever you are in your financial journey, a financial plan could help you reach your goals — and show you where you are today coupled with an outline of how to ultimately achieve them. Most important, a financial plan will provide you with a road map of clear action steps designed to get you from here to there.

What's Included in a Financial Plan?

Your financial plan is based on your financial reality, your wants and needs, your goals, and the challenges you need to overcome on the way to achieving your goals.

For that reason, every financial plan looks a little different — but there are some standard elements:

• A statement of your net worth, which shows all of your assets (like cash and investments) and liabilities (like debt). Your net worth is your assets minus any liabilities, and it helps show where you financially stand today.
  
  
• A look at your current cash flow, which is the money coming in and going out of your accounts each month. The plan might include suggestions on how you can adjust your cash flow so you have more to save and invest.
  
  
• An analysis of your biggest financial goals and how much money you may need to reach them. Your plan should also include a breakdown of the steps you need to take between now and when you want to achieve that goal. Synovus offers Financial Needs Assessments in-branch to help you with this.
  
  
• A retirement plan that helps you understand what you'll need to cover your living expenses after you stop working. That could also mean an analysis of the accounts you should invest in, how much you should contribute and any tax strategies1 you can take advantage of to maximize how much you keep in your nest egg.
  
  
• An investment strategy that's appropriate for your risk tolerance and capacity, time horizons for your goals, and your own personal philosophy on investing your money.
  
  
• Reviews and recommendations on insurance coverage, estate planning needs, and any other special considerations specific to you and your financial life. This will largely depend on what you want to do with your money and what other financial responsibilities or obligations you might have. You might need to account for buying a home or starting a business. Other people may need a debt repayment strategy or a plan for saving for their kids' college education.