By Hall Sumner
Life can be uncertain, especially in regard to managing your personal financial affairs. Some investors find themselves overwhelmed with information and conflicting advice. Others don’t have the time or interest to manage their personal assets and liabilities with discipline.
<a href="http://www.yourislandnews.com/wp-content/uploads/2012/03/hall.bmp"><img class="alignleft size-full wp-image-6119" title="hall" src="http://www.yourislandnews.com/wp-content/uploads/2012/03/hall.bmp" alt="" /></a>Take, for example, planning for retirement, your children’s or grandchildren’s education, and other major financial goals in your life. How much is enough? As you answer this question, you generally should consider a reasonable rate of compounded growth, as well as principal erosion through taxes and inflation and the possible impact of ongoing market changes. But few people have the knowledge or the time to do this on their own.
Traditional planning can create an illusion of stability. But nothing happens every year exactly as predicted. Goals change with your station in life — and financial and market conditions are constantly changing as well.
As you take inventory of your important financial goals and prioritize them, know that proper planning can help provide a picture of financial strategies. However, past performance is no guarantee of future results. Through periodic reviews of your goals and the performance of your investments, you can assess how your actual investing and spending patterns affect your chance of success. With this information, you can make changes as needed to keep your plan on track toward your unique financial objectives. There’s no substitute for common sense, a realistic and comprehensive plan that accommodates uncertainty, and sound financial advice from someone you can trust.
<em>This article was written by Wells Fargo Advisors and provided courtesy of Hall Sumner, CFP®, Sr. Fundamental Choice Portfolio Manager, in Beaufort at 843-524-1114.</em>
<em>Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE.</em>
<em>Wells Fargo Advisors, LLC, Member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo &amp; Company.</em>