Why You Need a Financial Plan

Thu. December 28, 2000 12:00 AM by Newstream

New York, NY - Investing is a lot more than just calling your broker and buying or selling. To be successful, it's wise to plan ahead. But why should the average investor have a financial plan?

"Cause everybody needs to save for their future; everybody seems to be spending the money they make today, today and they have no regard of Social Security plan or anything like that going forward," says contractor Darrell Ipson.

But most people put at least a little away, and the markets are full of investors who do more than that.

"Financial planning is much more than putting money away for a rainy day," says Arthur Nintzel of Merrill Lynch. "In a financial plan, an investor will receive a quantified objective. He'll know exactly how much money he has to put away how much he needs to earn on that money, and when he'll achieve his goal."

A common misconception is that financial planning is only for the wealthy and the well connected. But it's for the average Joe and Jane as well.

"Financial Planning is available to anyone who has disposable income," says Nintzel. "When I taught college courses, my lasses would define an investor as an individual who had money left over in his checking account having paid all his bills. People with limited resources need financial planning most of all."

Although many people already have a financial plan in place, if you don't, it's not too late to get started. Experts say a comprehensive plan based on your risk tolerance threshold and personal financial goals is the key to successful investing.

News, photos provided by Newstream