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Life Stages
Financial Topics
Buying a Home
College Planning
Creating a Business
Disability Income Insurance
Health Insurance
Investing for Your Future
Life Insurance
Long-Term Care Insurance
Managing Debt
Medicare Supplement Insurance
Planning an Estate
Refinancing Your Home
Saving for Retirement
Why Plan?
Why Get Help?
Your Financial Road Map

Why Financial Planning?
Everyone can benefit from having a financial plan. Regardless of your income or net worth, financial planning can help you manage the money you have, so you can protect yourself from risks and reach your life goals.  

You need financial planning if:

You have goals
Financial planning can help you reach short- and long-term goals such as:  

Assuming a 3 percent rate of inflation, a 40-year-old making $25,000 per year will need an annual income of $52,000 to maintain the same standard of living in retirement.

In 2022, public college expenses are predicted to reach more than $136,000, and private school expenses will be more than $291,000*.  

Creating a business
Over 50 percent of small businesses fail in the first year and 95 percent fail within the first five years.  

Managing debt
At the end of 2001, the average American household carried more than $7,000 in credit card debt.  

Raising a family
The cost of raising one child to age 18 can amount to as much as $344,000, and that doesn’t include his or her college tuition or wedding.    

You face risks
Insurance is an important part of every financial plan because it can help protect you from financial risks associated with:

Premature death
Today, an average burial costs approximately $10,000.   

National health expenditures are expected to increase at an annual rate of 7.3 percent; that’s twice the annual rate of inflation.  

A 20-year-old has a 30 percent chance of becoming disabled before retirement.   

Long-term care
Fifty percent of Americans will need long-term care in their lifetime, and the costs average $40,000 to $50,000 per year or more. 

Contact a Modern Woodmen representative for a financial analysis or use the resources in this section to start creating your financial plan today.

Sources: Are You Ready? Is Entrepreneurship for You? U.S. Small Business Administration, 2003. Expenditures on Children by Families, 2003. U.S. Department of Agriculture. Social Security Protection if You Become Disabled. Research in Action, Agency for Healthcare Research and Quality, 2002. Social Security Disability Planner, 2005. Trends in College Pricing. The College Board, 2003. Long-Term Care Planning, Society of Financial Services Professionals, 2002. Federal Reserve Statistical Release, 2006.

*Average college costs include tuition, fees, books and supplies, room and board, transportation and other expenses. Assumes a 5 percent annual increase in costs.