Have you ever thought about the consequences of not visiting the doctor for several years? We all know that an annual check-up is important in order to maintain proper health and physical fitness. The same holds true with financial fitness.
Doing regular check-ups on your financial pulse can show whether you are on solid financial ground, or if you have strayed a bit from your goals. As a general rule, it is recommended to implement a Financial Needs Analysis on a yearly basis. This process will help you determine the future needs, on a short- and long-term basis, for yourself and your family. Once your needs have been identified, you can design a plan to help ensure you will have money available to meet those objectives.
Looking for Symptoms
There are certain questions designed to help you identify your financial priorities. Some of these questions could be:
- Do you have an adequate savings program for unexpected emergencies?
- Do you have enough funds to send your dependents and/or children to college?
- Do you have a plan to achieve your retirement goals?
- How much life insurance is enough to protect yourself and your loved ones?
For most people, it is important to attain and maintain a comfortable lifestyle. This often translates into having a house, providing a good college education for your children, having enough income left for your leisure activities, and having sufficient retirement income to maintain your lifestyle once your working years are over.
You might think that the Financial Needs Analysis involves highly technical financial planning, available only to business owners or wealthy individuals. However, it applies to everyone and it focuses on the additional capital you need to achieve your goals. This is done by assigning a dollar value to each need or objective you want to attain.
Diagnosing Your Condition
While there may be no quick fixes in financial planning, it is important to review your situation and consult a qualified financial professional at least once a year.
Don’t wait. Contact us from Monday through Saturday from 8:00 a.m. to 8:00 p.m. at 787.PREMIUM (787.773.6486), in order to discuss appropriate strategies for your unique circumstances.
Note: This article applies to Premium Banking Services clients.
The suggestions and recommendations included in the Financial Needs Analysis do not guarantee the desired performance. Banco Popular de Puerto Rico, its subsidiaries or its affiliates does not offer tax, legal, or accounting advice. If you desire legal, tax or accounting advice, you should consult a professional who specializes in these areas. Certain conditions may apply.
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