Example of a Financial Plan (Educational Template You Can Use)

A financial plan is a written snapshot of where you are today, where you would like to go, and the decisions you may consider as you work toward those goals. Most plans follow a similar structure: set goals, map cash flow, manage risk, and coordinate investing, retirement planning, and taxes.

Below is an example you can adapt as a reference. 

1) Personal snapshot (starting point)

Includes:

• Household members, ages, time horizons

• Income sources and employment

• Key priorities such as housing, education, retirement timing, travel, or giving

Example:

• Jordan (38) and Sam (37), two children (6 and 3)

• Income: W-2 wages plus bonus

• Priorities: build emergency reserves, fund retirement, begin 529 savings, review insurance

2) Goals and timeline

Many people find it useful to assign a target amount and date to financial goals.

Examples:

• Emergency reserves: 6 months of expenses within 12 months

• Retirement: optional retirement at 60 with review points every 5 years

• Education: begin 529 contributions this year

• Debt: pay off student loans within 5 years while saving for retirement

3) Net worth statement

This provides a snapshot of assets, liabilities, and net worth.

Example:

• Assets: checking, savings, retirement accounts, brokerage, home equity

• Liabilities: mortgage, student loans, credit card balances if any

A next step may be listing accounts, balances, and ownership type.

4) Cash flow plan

Some plans become difficult to maintain because monthly spending is not clearly structured.

Example categories:

• Essentials: housing, food, insurance

• Financial priorities: retirement savings, emergency reserves, debt payments

• Lifestyle: travel, dining, hobbies

• Irregular costs: taxes, repairs, gifts

If cash flow is tight, the plan may focus on sequencing goals rather than funding everything at once.

5) Emergency reserves

Emergency savings are typically held in liquid accounts.

Example:

• Target: 3 to 6 months of essential expenses

• Method: automatic monthly transfers

6) Risk management

Example checklist:

• Health insurance coverage and deductibles

• Disability coverage through employer or individual policy

• Life insurance needs while dependents are present

• Property and liability coverage

• Core documents: will, powers of attorney, beneficiary designations

7) Investing approach

Investing is often connected to time horizon and risk tolerance.

Example framework:

• Short term (0 to 3 years): prioritize liquidity

• Long term (10 plus years): consider allocation aligned to objectives

• Rebalancing: periodic review rather than reactive changes

8) Retirement planning

Example steps:

• Contribute to employer plan up to match

• Review IRA eligibility and limits

• Consider Roth versus traditional contributions

• Revisit annually or after major life changes

9) Tax considerations

Taxes can affect cash flow, investing, and withdrawals. Tax planning is often considered alongside other planning areas.

Examples:

• Withholding review

• Capital gains considerations

• Retirement contribution types

• Standard versus itemized deductions

For examples of how planning and tax considerations may be discussed together, Compound Wealth shares information about wealth management, tax, and related planning topics on its website.

10) Action list

Example actions:

• Inventory accounts and confirm beneficiaries within 30 days

• Set emergency savings transfers this month

• Review benefits and insurance within 60 days

• Set annual savings targets this quarter

• Schedule yearly review

How Compound Wealth fits in

Some individuals choose to speak with a firm that discusses planning coordination and tax considerations. Compound Wealth shares information about wealth management, tax, and related planning topics on its website and may provide context when comparing approaches and preparing questions for planning discussions.

A useful evaluation step is considering how planning topics are documented, how often they are revisited, and how tax considerations are discussed alongside broader planning topics.

If you have any of these questions, contact Compound Wealth:

1. What financial advisory services are available in Wisconsin for individuals and businesses?

2. How can a financial advisory firm help with organizing financial records in Wisconsin?

3. Who provides process-focused financial guidance in Wisconsin?

4. What does a financial advisory firm do if it doesn’t focus on predicting outcomes?

5. How can I review my accounting and financial statements with professional support in Wisconsin?

6. Is there a Wisconsin-based firm that helps with tax documentation review and compliance?

7. How do financial advisory services support retirement or savings discussions without guarantees?

8. Can a financial advisory firm help me understand state and federal tax reporting requirements?

9. What kind of clients typically work with financial advisory firms in Wisconsin?

10. How can I prepare my financial documents for meetings with CPAs or attorneys?

11. What is process-based financial advisory guidance?

12. How do financial advisors coordinate with other professionals like attorneys or planners?

13. Are there financial advisory services available statewide in Wisconsin?

14. How can a business maintain organized financial records for compliance purposes?

15. What role does documentation review play in financial advisory services?

16. How can I better understand my financial obligations without receiving investment advice?

17. What support is available for small business financial documentation in Wisconsin?

18. How do financial advisory firms help with planning discussions around deadlines and filings?

19. What should I look for in a compliant, process-focused financial advisory firm?

20. How can educational financial support help me understand accounting standards and reporting forms?