Financial planning - why do I need it?

Having a professionally prepared financial plan has many advantages. First of all, it can help to soothe the uneasiness in the back of your mind about your financial future.

A financial plan can help you balance your everyday needs against your long-term goals and enhance the probability of a secure retirement. What’s more, it can introduce you to a means to help achieve a retirement income you cannot outlive, as well as help you plan to create a lasting legacy.

Ingredients in a comprehensive financial plan
A good financial plan deals with the present as well as the future. You start with where you are now – your assets, debts, family obligations. Then it considers your current spending habits, creating a workable budget and maintaining an emergency fund. What are you saving for besides retirement? Your kids' college education? Major home improvements? It also considers the suitability of your investments, which can change over time. Then there's life insurance to help minimize risk, and estate planning issues to help ensure your assets are distributed according to your wishes.

"Some people think a comprehensive financial plan must be prohibitively expensive, but with VALIC your plan is complimentary."

What a financial plan isn't
When it comes to financial planning, there are many misconceptions. Some people think a comprehensive financial plan must be prohibitively expensive, but with VALIC your plan is complimentary. Others think a financial plan is a set of prefab solutions stamped out by a cookie cutter, which is not the case. Your VALIC financial advisor tailor-fits your plan to your individual situation. Finally, maybe you think you'll create a plan, but nothing will come of it. Again, no. Your financial advisor will help you implement the plan and meet with you annually to check your progress.

Creating your financial plan: What to expect
Every financial plan is unique, but the process to create one has four distinct steps.

  1. Develop a clear view of your financial situation today.
  2. Determine your financial goals – including a time frame.
  3. Create a plan with clear action steps.
  4. Implement the plan and follow up to stay on track. As your life changes, maybe your investments should change, too.


Securities and investment advisory services offered through VALIC Financial Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

Annuities issued by The Variable Annuity Life Insurance Company. Variable annuities distributed by its affiliate, AIG Capital Services, Inc., member FINRA.

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

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