You need to find a way to build wealth and protect it from being eroded by taxes, inflation and market fluctuations. A good financial plan takes into account future interest rates, growth rates, inflation and your current requirements projected into the future.
You could be planning for any or all of the following:
- Protection for your family in the event of death
- A plan should you fall ill or become disabled
- Creation of wealth
- Saving for a home
- School and university fees
- Family celebration (barmitzvah, wedding)
- Estate planning
- Retirement planning
- Tax planning.
Once you know how much money you will need for your future requirements, you can start planning for your financial future. You should review your plan on at least an annual basis, but more often is advised.