What is Financial Planning?

More than anyone, busy women understand the value of time.  Many of our clients are busy women who feel  responsible for the well-being of their families. Hence, it stands to reason that the time/value of money is pretty darn important as it is a critical element that allows us to take care of ourselves and our families.   It is no surprise our clients also know that life’s financial implications for women are different than for men. 

​More than anyone, busy women understand the value of time.  Many of our clients are busy women who feel  responsible for the well-being of their families. Hence, it stands to reason that the time/value of money is pretty darn important as it is a critical element that allows us to take care of ourselves and our families.   It is no surprise our clients also know that life’s financial implications for women are different than for men. 

• We live longer​.  Women who reach the age of 65 are expected to live more than two years longer than men who reach 65. (annuity.org)
• We earn less.  The Institute for Women’s Policy Research in 2017 said the gender pay gap had a statistically significant reduction in 2016 for the first time since 2007. Yet researchers said equal pay will not be achievable for 43 years.
• Women are more likely to have career interruptions to take care of loved ones. Among mothers who have ever worked, 39% say they have taken a significant amount of time off from work to care for a child or other family member. This compares with only 24% of working fathers. (Pew Research)

At Mosaic Fi we are thrilled that more than 90% of our clients are engaged in financial planning with us.  Family, responsibility, relationships and accomplishment are values we cherish and being financially savvy is one of the ways we live our values.
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Statistically speaking, the majority of American women have not engaged in financial planning.  Financial literacy in the US is dismal (less than half of states require financial coursework in their high school curriculum) and many times, those that would benefit the most, run in the opposite direction.  Why don’t more people plan? Possibly because there is a lack of awareness and understanding of what financial planning is and means. And that it makes good sense to do in advance of big decisions, life transitions or before embarking on an investment strategy.  Knowing where you are and where you are going will help you make good financial decisions along the way.  

 Money and Control:  What do I control? 
When it comes to money there are many things that are outside of our control and affect our financial outcomes, for better or worse.  Out of our control are

• Interest rates
• Taxes
• Market performance
• Inflation
• Health care costs

Ok, then what is in our control and where does it make sense to focus?

• Spending
• Borrowing
• Asset Allocation (risk)
• To some extent, our ability to earn money
• Financial Planning

One of Mosaic Fi’s core beliefs is that financial planning is a key component to achieving goals; including planning for retirement, funding our children’s/grandchildren’s education, starting a business and most importantly, helping make informed decisions when the unexpected happens.  It is also a great way to start teaching kids about money.

What Is Financial Planning

• Financial planning is a framework for decision-making
• Financial planning is a roadmap to goals
• Financial planning can uncover potential risks and unintended consequences
• Financial planning is an opportunity to see the aggregation of your assets and recognize their earning potential
• Financial planning is a process for implementing financial organization
• Financial planning is fluid: as circumstances change, the plan can change
• Financial planning is dynamic and on-going

What Financial Planning is not

• Financial planning does not replace prudence, discipline or good decision making
• Financial planning is not static
• Financial planning is not a guarantee for success

OK, I am convinced I need a plan. What do I do?
Congratulations!

The first step is to contact our office for access to MyMosaic, your personal portal to our financial planning engine and the checklist of documents needed for planning. In addition, we will schedule a meeting with Jenifer to discuss your situation including goals, concerns and any special circumstances unique to you and your family.

Depending on your situation we will evaluate the different elements of your financial life such as: retirement planning, life insurance, disability insurance, long-term care insurance, college planning, appropriate risk profile for your investment portfolio, asset allocation, cash management, 401k plans, pensions, stock options, estate planning, tax optimization, budgeting, saving, etc.  
Once the analysis is complete, we will call you to schedule a convenient time to meet and review the plan.  It is not unusual for questions to arise that may require us to make some adjustments.  Remember, this is a fluid process.  
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As busy women we understand the value of time.  Taking the time to understand your financial picture will allow you to make better life decisions today and in the future.

Please let us know your experience with and/or thoughts about financial planning.

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