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At First Midwest, we believe that no matter an individual’s age, income or net worth, everyone has these seven basic financial needs at practically every stage of life. While your individual circumstances and goals may be in a constant state of evolution, these basic needs do not change. They serve as a touchstone for financial planning; and, we believe they are the building blocks for financial independence.
Take a moment to consider how your goals match up against these seven needs. Then, explore the examples to shed more light on your own financial planning process.
1. Cash Management
The need for convenient deposit, access and accounting of funds.
Example 1 Example 2
2. Loan & Credit Management
The need for loans and credit to acquire assets, make large purchases and cover shortfalls.
Example 1
3. Savings
The need to set aside a portion of income on a regular basis in order to accumulate funds for investment.
Example 1
4. Investments
The need to increase the value of accumulated funds by acquiring marketable assets that return income and/or appreciate in value.
5. Tax Management
The need to predict, control and reduce income tax liability.
Example 1
6. Estate Management
The need to manage asset growth, investment income and tax liability for the continuing creation and eventual transfer of wealth.
Example 1
7. Asset Protection
The need to manage investment risk, insure assets, protect property and guarantee income.
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