How a Financial Planner Can Help You

Updated 8 months ago

A financial plan covers your entire financial picture: your assets and liabilities, your risk management, your financial goals and whether or not they are realistic. Financial advisors offer plans and because they are so extensive, there is a cost to have one developed for you. Net-worth- a net-worth statement is the difference between your assets and liabilities. Listing your assets means compiling the estimated – but accurate- value of house, camp, cars, business. And then adding in your ‘liquid assets’ CD’s, investment accounts whether retirement or individual/joint accounts held , savings and jewelry, coins and other hard assets. From that total amount subtract your total liabilities: loans on real estate and other property, all consumer debt such as credit cards, student loans The NET result, hopefully positive, is your net-worth. Debt-to-Income ratio- This is a simple calculation. Add up all your monthly debt payments: mortgage, consumer debt, child support, everything you need to pay each month. THEN add up your monthly income. Divide your income by your debt. Here’s an example: You pay $500 a month and you earn $2000 per month your debt to income ratio is 25% Cashflow/Budget – Cash comes in and then it is allocated for various purposes: housing, debt repayment, savings, life. Tracking the saving and spending of money is a cashflow statement or a budget. You need one to create a financial plan. You need one if you ever hope to have a positive net-worth. Next week we will talk about the other aspects of a good plan. Citations: Marion Syversen, MBANorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. (CR 9122)


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