Financial Planner: Essential Funds

Jan Verhoeff

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Setting goals for retirement initializes the need for financial planning for most adults. However, retirement is not the only reason you need to set aside funds for the future. Throughout life, there are necessary reasons to have funds set back and waiting, as well as investments that continually grow in value.

A few of these reasons for needing money set back early in your life might include:

  • Your own education.

  • Purchase of your first home.

  • Travel experience.

  • Relocation for first job.

  • Career definement (often required prior to starting an actual career).

  • Marriage

  • Family needs

  • Transportation

  • Personal Emergency

    As personal goals are established, career and family life blossom, and your life becomes busily entwined with the lives of others financial matters often take a back seat as you purchase your home, invest in your children, help your spouse and other family members meet goals. You might forget the important aspects of financial planning, neglecting to budget money for savings and future spending needs. During this time, you may even justify your lack of planning as being a need to spend the money on current costs of living, and maintaining life standards. Nothing could be further from the truth.

    Basic Financial Planning should always include two very important aspects of spending.

    Tithes and Savings.

    First, you must remember where all your support comes from and give back to God for that which you earn. Whether you give back as a matter of church belief or charity, giving back is an important concept to remember. This should be a minimum of 10% of your earnings. When you realize, it all belongs to God, it becomes a simple part of planning to be a good steward and give back.

    Second, you must remember to pay yourself for the hard work you do by saving a portion of your earnings. This should also be a minimum of 10% of your earnings.

    Children, who are taught this concept early in life, continue to invest, and often have good financial skills in their youth, as well as a nice savings plans by the time they enter college. These children are ahead of the game, already used to saving and tithing; their adult lives are spent with fewer struggles and less financial problems. Their retirement is secure due to planning for the future.

    The traditional IRA fund is based on this concept, with the average income being near $30,000 a year, an investment of $3,000.00 is simply 10% of your earned income. Invested at prime rates of interest, tax free or tax deferred, this income will support you in your retirement years.

    If a savings plan is established in the early years, it will mature with the adult, growing and blossoming into a nice round figure by retirement. Even if there are frequent reductions due to investment purchases, education, and occasionally necessary expenditures, these funds become substantial amounts of money after a lifetime of continued savings.

    Copyright © 2005 – Jan Verhoeff

    Good basic financial planning skills are a requirement for everyone. With a solid plan set in writing and a sincere dedication to putting money in the bank for your future, everyone can retire with comfort and security. Visit one of our financial planners, at

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