Tim Dameron

Tim Dameron

Financial planning goes through stages

By Tim Dameron
Business Columnist

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Just as there are four seasons in a year, there are different seasons of financial planning during your lifetime. Financial planning can help you can gain a better understanding of where you are at financially, how to prepare for challenges that might be ahead and how to plan for where you want to go.

The stages include:

  • Building assets – At the beginning of your career, your financial focus typically is on accumulating assets. Your ability to earn income might be your most valuable asset, so investing in your career is critical. It’s also important to establish an emergency fund, build your personal savings and pay off student loans.
  • Investing for the future – When you grow more successful financially, you will increase your discretionary income. During this stage, you’ll start planning and saving for future goals, such as a child’s college education or a comfortable retirement. Make sure you have a well-balanced and tax-diversified portfolio to provide potential growth opportunities.
  • Planning for retirement – As you near retirement, planning for it often becomes your financial priority. Begin by thinking about your retirement goals and dreams. Then, create a detailed plan that will help you get there. You’ll want to make sure you have the flexibility to take income in tax-efficient ways that will enable you to continue your lifestyle and be prepared for the unexpected in retirement.
  • Generating retirement income – Once it’s time to enter retirement, begin implementing your retirement plan and enjoying the assets you’ve accumulated. After a few months, re-evaluate your plan and make adjustments so you stay on track.
  • Leaving a legacy – As you become older and more financially secure, leaving a legacy becomes paramount. Legacy is about the impact you’ll make on people, charities and causes that are important to you. It’s also about making sure you have the right beneficiaries in place to protect your assets.

Of course, there is some overlap in each of these stages. For example, you might take steps to get the right protection in place while laying a foundation to grow your assets or you might take retirement income while planning ways to transfer your wealth.

Regardless of the stage you’re in, it’s important to make sure that your legal and financial documents are properly structured to ensure the most efficient and effective transfer of your assets. A financial adviser can help you get started with meeting your financial needs now and in retirement.

This column is provided by Ameriprise Financial Services for Tim Dameron, its financial adviser in Rocky Mount.

Comments

Really useful read! Indeed,

Really useful read! Indeed, financial planning is strong mean to achieve success but the more important thing is sticking to that plan. Not all the companies can do it properly facing numerous of hassles on the way. Some use data rooms based on internet access to the information, so-called cloud technology, and I think they are more flexible than those that don’t.

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