The True Purpose of Financial Planning

As a financial advisor, I've found my clients ask a* Can I pay for my child's education? My grandchild?
broad range of questions concerning their financial* Can I afford to start my own business?
situation. However, these questions are all elements of* Do I have the ability to take my family on an
one basic question: "am I going to be okay?" Here is aextended vacation?
sample of the types of questions you should be asking* Will I be able to pass my home on to my children?
yourself:* Can I afford to leave my job to pursue something I
* Am I going to be able to retire by the age I haveam passionate about?
targeted? Can I afford to retire early?Of course, this is but a small sample of the type of
* Once I retire, will I be able to maintain my currentquestions people may have, but the point of each
standard of living?question is really "can I afford to live the life I envision."
* If something happens to me, will there be enoughInterestingly, notice that none of these questions have
money to take care of my spouse, children, andanything to do with achieving a high rate of return, or
parents?what the next hot stock will be. Thus, the true purpose
* What if I live longer than I anticipate? Will I haveof financial planning is determining how we can live the
enough money to support myself?life we desire, not how to maximize our investment
* Can I afford to contribute to my favorite charities?accounts.