Building a Roadmap to Long-Term Success and Stability

You’ve probably heard the famous quote: “if you fail to plan, you are planning to fail” by Benjamin Franklin. This timeless advice can be applied to multiple aspects of life. Whether it be planning a family vacation, surprising a friend with a gift or even starting a new business. In each case, planning helps you start on the right foot, make meaningful progress and achieve your goals. 

Consider something as simple as a vacation. Booking hotels and flights in advance, securing travel insurance and arranging transportation at your destination can lead to a smooth, enjoyable experience. Financial planning works in much the same way, but it’s arguably the most important form of planning you’ll ever do.  

A well-crafted financial plan supports long-term financial health and stability. And while many people think financial planning is just about managing investments, it’s much broader—it’s about understanding your entire financial picture and making informed decisions for your future. 

Step One: Establish your Plan 

Analyze your Current Situation 

Before you can set financial goals, you need to know where you stand. Taking stock of your current cash flow, debt obligations and assets will give you a clearer idea of your financial landscape. You might uncover overlooked areas that could lead to long-term issues or discover opportunities to optimize for better outcomes. Only once you understand your starting point can you effectively plan your next steps. 

Determination of Financial Goals 

Setting specific goals is an important part of the planning process. Some of the most common objectives include: 

  • Retirement: Financial planning can significantly boost your confidence in your ability to retire comfortably. As you approach retirement, your investment strategy will likely need adjustments. A detailed financial plan will help you prepare when shifting investments and take advantage of changes in your income after retirement. 
  • Wealth Preservation: Preserving wealth isn’t just about managing investments; it also involves estate planning and tax efficiency. A strong financial plan helps pass your assets to loved ones in a way that minimizes taxes and maximizes value. Tax considerations aren’t limited to retirement but should be factored into any major financial decisions. Finally, owning a diversified portfolio of appreciating assets will help you maintain purchasing power in an inflationary environment. 

Estate Planning 

With the estate and gift tax exemption set to be halved in 2026—dropping to about $7 million—the importance of estate planning cannot be overstated. The estate tax rate sits at 40%, so a well-prepared financial plan can help you avoid significant tax liabilities, allowing more of your assets to be passed on to your loved ones. Without proper planning, a larger portion of your estate could be lost to taxes, reducing what you can leave behind. 

Step Two: Make Adjustments as you Go 

Ongoing Reviews  

Life happens, and things change. Major life events—such as the birth of a child, an out-of-state job offer or an exciting new business opportunity—may require you to adjust your financial strategy. A flexible plan allows you to respond to these changes without compromising your long-term financial goals. For example, you might build up cash reserves in a high-yield account while you decide where to invest next, giving you both flexibility and peace of mind. 

Step Three: Enjoy the Fruits of your Labor  

At the end of the day, the goal of financial planning is to give you confidence and security. With a solid plan in place, you can look back at your journey knowing that your estate is in order, your investments are managed, and your taxes are optimized. Even in the face of unexpected events—like a global pandemic or economic downturn—you can feel secure knowing you’ve done the work to establish a sound financial foundation. 

Contact an Adams Brown Wealth Consultant to discuss establishing a financial plan.