Financial planning is influenced by many factors over an individual's life cycle and typically involves three main stages: (1) basic wealth protection when young, (2) wealth accumulation during working years, and (3) wealth distribution in retirement. While many follow a similar pattern, everyone's financial plan is unique based on their individual goals and lifestyle conditions at different life stages. Financial goals should be SMART goals that are specific, measurable, attainable, realistic, and time-bound.

1. Life Cycle of Financial Planning Take Charge of Your Finances

2. Financial Planning Many people follow a similar financial pattern during their life BUT Everyone has an individualized financial plan. Financial planning is a tool used to achieve financial success based upon the development and implementation of financial goals.

3. Financial Plan Influences Financial planning is influenced by many factors: These factors can be expected and unexpected.

5. Financial goals should be SMART goals:

6. Specific

7. Measurable

8. Attainable

9. Realistic

10. Time BoundAn essential step to creating a financial plan

11. SMART Financial Goals

12. Lifestyle Conditions

14. Includes three stages

15. The amount of time it takes to move through the financial life cycle varies for every individualFinancial Life Cycle A life cycle is a series of stages in which an individual passes during his or her lifetime

16. An Individual’s Financial Life Cycle Approaching Retirement Years Single * Marriage * Start and Raise Family Retirement Years Stage 3: Wealth Distribution $ Stage 2: Wealth Accumulation Stage 1: Basic Wealth Protection Years of Age 0 20 30 40 50 60 70 80

17. An Individual’s Financial Life Cycle

18. Personal Financial Management Pyramid Wealth Distribution ‘giving it to your chosen ones’ Estate Planning Building Long Term Wealth: goal setting, retirement planning, investments Wealth Accumulation ‘giving it to yourself’ Building Financial Security: goal setting, savings plan, home ownership, children’s education Risk and Tax Management: goal setting, insurance, protection against economic loss, income tax reduction Basic Wealth Protection ‘quit giving it to others’ Credit and Debt Management: goal setting, credit use, avoiding credit abuse, debt reduction Cash Management: goal setting, emergency, cash reserve, record keeping, spending plans, net worth, and income-expense statements

20. What activities and events require financial planning during each stage?

21. High School Ages 13-17

22. Young Adult Ages 18-24

23. Adult With or Without Children Ages 25-34

24. Working Parent or Adult Ages 35-44

25. Midlife Ages 45-54

26. Pre-Retirement Ages 55-64

27. Retired Ages 65 and olderIdentify someone you know in each category

28. Traditional Age Group Financial Planning Needs High School Ages 13 – 17 Developing a plan for eventual independence Preparing for career Evaluating future financial needs and resources Exploring financial systems – banks, etc. Developing a personal system of record keeping

30. Establishing a household

31. Training for a career

32. Earning financial independence

33. Determining insurance needs

34. Establishing credit

35. Establishing savings

36. Creating a spending plan

37. Developing a personal financial identity

39. Child-bearing

40. Child-raising

41. Starting an education fund for children

42. Expanding career goals

43. Managing increased need for credit

44. Discussing and managing additional insurance needs

45. Creating a will

47. Traditional Age Group Financial Planning Needs Midlife Ages 45 – 54 Assisting with higher education for children Investing Updating retirement plans Developing estate plans

48. Traditional Age Group Financial Planning Needs Pre-Retirement Ages 55 – 64 Consolidating assets Planning future security Re-evaluating property transfer Investigating retirement part-time income or volunteer work Evaluating expenses for retirement and current housing Meeting responsibilities of ageing parents

50. Re-evaluating and adjusting living conditions and spending as related to health and income

51. Adjusting insurance programs for increasing risks

52. Acquiring assistance in management of personal and financial affairs

53. Finalizing estate plan