Working through financial troubles
When it comes to establishing a plan for your financial future, its imperative to know your starting line. That’s where a financial assessment comes in. A financial assessment usually comes in the form of an online questionnaire, in-person meeting, or phone call with a financial planner. The purpose of the assessment is to understand where you stand today, and where you want to be in the future, so that you can get accurate recommendations for how best to achieve your financial goals.
A good financial assessment will most likely ask questions about:
- Your current sources of income, bills, and expenses
- Basic financial health, including your current retirement savings, emergency savings, and debt
- Financial obligations, like caring for elderly parents
- Your short and long-term goals, such as saving for a wedding, buying or selling a house, or sending kids to college
- Your credit score and current credit card payments and interest rates
- Your mortgage or rent details
- Are you having problems making payments on your current house and may have to sell your house fast? Our goal is for you to avoid foreclosure.
An in-depth or more personal financial assessment might also ask questions about:
- Retirement options available to you through your employer
- The types of accounts you currently have, rates, and current savings contributions
- Your approach to money, and areas you want to work on
- Your ideal balance between saving and lifestyle spending
A financial assessment may focus on different areas of your money life depending on who is giving it. Companies that sell financial products, such as insurance policies, brokerage accounts, or investment advice, may orient their questions and advice around the type of product they are selling. So always enter these evaluations with your “Eyes Wide Open”.
At “Financial Freedom X” we don’t manage wealth or sell financial products, like stocks, bonds or even insurance policies. Instead we focus on helping people simplify their life by giving them clear guidance for their money, including around achieving their goals, and a budget that takes their lifestyle into account. We also focus on helping them build better money habits over time, and giving them the resources they need to help them feel empowered and confident about their financial decisions.
Whatever financial assessment you choose to take, consider keeping in mind what your ultimate goals are, and how the company offering the assessment fits with those goals. If you are looking for a budget, an insurance company’s assessment might not be the right place for you. If you are looking for investment advice, keep in mind that your advisor might be earning fees or commissions on the investments they recommend.