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More Americans Report that Having a Financial Plan is Necessary

A recent study shows an increase in people that have a financial plan. Six out of 10 people reported that their financial plan needed improvement. The result that scares me the most is that a third of the group reported that planning is “necessary”…so, 2/3rds think it is unnecessary!

financial advisor

This is commentary on results of a recent focus group that shows an increase in Americans that see the necessity for a financial plan. But the numbers are still very low.

My feelings are split. The good news — this study shows an increase in people that have a plan. I see studies that show only 32% of Americans have a financial plan. The bad news – this is still a pathetically small number. They define a plan a having identified goals and have defined a way to realize the goals.

Overall, planning is critical. As an industry, we need to re-define what planning is. My view for the last 20 years is that the planning process is really negative unless you are rich. Basically, if you don’t have a lot of money, the results of a financial planning session are all about a message of “you are screwed”…”you need to save an arm and a leg to catch up.”

We have been building a different planning process that is interactive and takes in all the financial and non-financial variables. We can’t make up for someone not saving, but we can present and evaluate alternatives for every person. Seems to me a financial plan should be about moving forward in a smart and financially responsible way that puts you in a better place in the future.

So, find a financial advisor that makes it fun and can give you the feedback relative to your situation. BUT, make no mistake…everyone needs a plan.”

Article that the commentary is based off of can be found at:

No plan whatsoever: The sorry state of financial preparedness