Wednesday, June 22, 2011

Few Americans have put financial plan to paper

A recent survey finds that while many Americans feel it's important to have a financial plan in place to help manage their income, few have actually followed through on it.

A poll by the Certified Financial Planner Board of Standards found 86 percent of Americans felt everyone should have a financial plan, and 58 percent said they would personally feel more confident about their finances.

In addition, while 79 percent said they had a financial plan, most said that plan was only found inside their head, with 11 percent saying they just had notes.

"Creating and following through with a financial plan can be overwhelming for many people. Today's survey shows the importance of our efforts to educate consumers about the value of financial planning," said Eleanor Blayney, CFP Board's Consumer Advocate. "There are many different sources of advice, and consumers need to be aware of the breadth of options to identify the resource that best suits their individual needs."

Financial planning also goes well beyond the simple cost analysis day trading companies constantly do to know how much money they need to make in a given day to break even, as it can also be extended into estate planning.

Day traders may feel their estate will be managed according to their desires, but the lack of a legal document laying out their wishes means it may not be. Take the time to create a living trust to help ensure plans are followed while avoiding the costs of probate court.

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