STORY TOOLS

• E-mail story
• iPod friendly
• Printer friendly

Tell us about it

• What would you add to this story? Tell us what we missed.
• Do you have photos from this event? Documents we need to see? Share with us.
• Upload photos & videos
• More ways to get your stuff online and in the paper.

More Business

• Christmas Island Style Gala to celebrate Marco’s top community contributors
• Workplace winners, part 1
• The difference an education can make

Share and Enjoy [?]

Congratulations, with tax returns completed and mailed, most of us breathe a sigh of relief and forget about the IRS for another year.

Most of us are migrants from the Northern half of the county and can appreciate the reference to spring in the quote. Filing taxes on April 15 was a reminder spring was on its way.

The information you gathered to satisfy Uncle Sam may be just what you need to begin realizing your financial dreams. Don’t waste all of that time and effort just to take care of your tax liability; capitalize on this information resource to aid you in obtaining financial security.

Developing a personal financial plan begins by accumulating much of the same data needed to prepare your income taxes. It is the perfect time to start on a financial plan. You can use your income tax information to form the plan’s foundation.

Using a specific process increases the likelihood of making a commitment to following thought and hopefully heightening the possibility of success. When we go to the doctor there is often a questionnaire to be completed before meeting with the doctor.

Our two year old granddaughter was with us last week and she had a great doctor’s bag that we played with. I watched with great interest when she would sit with Papa Pete and go through a set process with her patient. First she assesses the situation (boo boo), diagnoses the problem (needs a band-aid) and offers the prognosis (all better).

Her process is not too different from what is used in assisting pre-retirees plan for their retirement. Like going to the doctor, the diagnosis and prognosis are more accurate depending upon the information given to that professional.

First, you will need lists of assets and liabilities, copies of tax returns, insurance policies, wills, trusts and pension plans. This involves getting a handle on where you are in your financial life before you plan for where you want to be.

The second step in the financial planning process is identifying both financial and personal goals. The three objectives cited most often are security in retirement, providing for children’s education and developing an estate plan. While these are a little vague, they’re a start.

The third step is identifying problems that might prevent financial independence, such as too little or too much insurance, a high tax burden, inadequate cash flow or current investments that are losing money. It is important at this point to have a financial advisor assist in developing a plan.

A professional advisor can provide objectivity and expertise. It’s hard for people to be objective regarding their own finances, and most do not have the financial experience necessary to make wise decisions.

The fourth step is structuring a plan to meet financial needs and objectives, followed by implementation of agreed-upon recommendations. A financial advisor can help develop and implement the plan, but the decision to implement, modify or reject recommendations remains the individual’s ultimate responsibility. Many advisors provide a checklist to help clients implement their plans themselves.

A final, and often most important, step is periodically reviewing and revising the plan to account for changes in personal and economic conditions. The advisor and client can then review goals and problem areas and fine tune the plan as needed.

Be sure to check with your financial advisor how your tax return can serve as your starting point and progress report on achieving your financial planning goals. You did all the work to complete your tax return so why not get additional mileage out of this important information.

Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.