Two-Thirds Don’t Have a Financial Plan

Despite increasing pressure to slash debt and rebuild retirement funds, nearly two-thirds of consumers do not have a written financial plan, according to the 2009 National Consumer Survey on Personal Finance. The survey, released today by the Certified Financial Planner Board of Standards, found that 64% of respondents do not have a written financial plan in place.

But those with a college degree, higher household incomes and more assets to invest are more likely to have one. Of the 284 respondents who have a written financial plan in place, 62% were motivated to have one because of retirement goals and planning. Meanwhile, 48% wanted advice on a broad range of financial matters, 41% were focused on savings goals and planning and 36% were concerned with investment goals and planning. The CFP spoke to 1,742 respondents in total.

Respondents who don’t use a financial planner are hesitant because their pecuniary situation is not complicated enough. Most are confused about what a financial planner does or believe that it’s too expensive to use one.

So take note: It’s important to develop a healthy baseline [financial plan] and not just use it in times of crisis. As the saying goes, people don’t plan to fail, they just fail to plan.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.