Without Financial Plan
Some savings accumulated in checking/savings at bank, but lacking structure.

With Financial Plan
Cash based on lifestyle/needs; structured for safety, liquidity and yield between banking and investment accounts.

Without Financial Plan
Saved funds in 401(k) and bank, but no intentional tax strategy.

With Financial Plan
Intentional balance of investments based on current and expected taxation.

Without Financial Plan
Participating in company’s retirement plan and saving whatever is “leftover” from lifestyle expenses. Retirement age and vision not defined.

With Financial Plan
Precise retirement target age, defined lifestyle requisites and understanding of required savings and investment strategy to attain these and other goals.

Without Financial Plan
Investment allocation based on general risk tolerance.

With Financial Plan
Investment allocation based on risk tolerance and required risk/return to achieve stated financial goals.

Without Financial Plan
Prepared, but potentially outdated will. Beneficiaries named on 401(k) and IRA accounts. Assets outside of retirement accounts to be subject to probate. Advanced strategies not utilized.

With Financial Plan
Up-to-date estate plan, including will, healthcare directives and power of attorney. Investment and legal structures designed to maximize asset transfers to heirs/charities and minimize taxes.

Without Financial Plan
Disability coverage through employer only. Underfunded or outdated life insurance policies with sub-optimal ownership. Homeowner’s coverage out-of-date due to inflation and increased replacement costs. No umbrella/liability coverage.

With Financial Plan
Policies with a purpose. Specific coverage coordinated between workplace benefits and personal policies to reach financial goals. Homeowner’s coverage designed to replace home in the event of loss. Adequate liability coverage to protect assets.