From Tax Savings to Investment Growth: The Key Benefits of a Financial Plan

A recent study shows that individuals who work with a financial advisor tend to retire two years earlier and feel more confident about their financial preparedness for the future. These individuals have saved twice as much for retirement compared to those without an advisor, underscoring the critical role planning plays in achieving financial security and reaching life goals.¹

Why is financial planning essential?

Financial planning is vital for setting clear objectives, establishing a cash flow strategy, saving wisely, and making informed decisions about borrowing, investing, and managing risks. A comprehensive financial plan can help minimize taxes, manage your estate, and prepare for significant life events, such as home buying, funding education, or retiring comfortably. It provides a realistic view of your finances, can help instill discipline, and introduces strategies you may not have considered, all of which can contribute to a more secure financial future.

6 key benefits a financial plan can provide

A well-executed financial plan provides a clear view of your financial situation, allowing you to see all your assets and liabilities in one place and helping you to make confident decisions about spending, saving, and investing. This clarity can help you understand your financial position better and provide confidence in making significant life decisions. It gives you a roadmap that adapts to changes and unexpected life events, helping to ensure you stay on track to achieve your goals. The benefits of having a financial plan are numerous and can help:

1. Reduce your tax bills and keep more of your hard-earned money.
2. Optimize your investment portfolio from a risk/return perspective, helping to ensure your investments align with your goals and comfort level.
3. Reveal potential growth opportunities or risks that you might otherwise overlook, allowing you to make more informed investment decisions.
4. Balance short-term needs with long-term objectives, helping ensure you’re prepared for the future without sacrificing your current lifestyle.
5. Make informed decisions about major life events, such as buying a new home, funding education, or planning for retirement.
6. Have the confidence to respond to, and make, major life changes, such as career shifts, starting a business, or retiring.

Discover the power of a personalized financial plan

A well-crafted financial plan can offer reassurance, provide clarity during market volatility, and encourage steady progress toward your financial goals. For more information on how Mercer Advisors can connect the dots between your aspirations and actionable strategies, let’s talk.

¹ “Planning & Progress Study 2024.” Newsroom | Northwestern Mutual.

Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.

All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.