7 Key Areas Of Financial Planning

7 Key Areas Of Financial Planning With Amida Wealth 

June with Amida is all about the energy of the father figure – bold, strong, and empowered. It is the season of Leadership, Guidance, and Yang energy. With that being said, Yang energy is aligned with the power of financial planning.

At Amida Wealth our mission is to empower our clients to realize their true wealth. To live fully in the present and plan for the future. There are many steps that need to be taken to reach the wealth you desire and the happiness you deserve. Our 7 key area of financial planning are: 

First, Your Current Financial Situation 

First, it is important to become present to your current financial situation. In other words, we need to become present to where we are starting and what path we need to create.

The initial planning process documents your current financial situation, and your goals. The plan is comprehensive but highly specific to your needs, and obstacles– it is like an art!

The process includes implementing your plan, monitoring your financial progress, and making updates as needed. A financial planner helps you every step of the way:

Allocation and Cash Flow Management: This involves creating an allocation strategy, tracking income and expenses, and effectively guiding cash flow to ensure you have enough money to cover your needs and save for the future.

Income and Expenses: Review your income sources and calculate your total monthly income. Then, track your expenses by categorizing them into Green & Red Zone financial categories.

Review Savings and Investments: Evaluate your savings accounts and investment holdings. This will help you understand your current savings rate and investment progress.

Consider Future Goals and Milestones: Identify your short-term and long-term financial goals, such as buying a home, saving for education, starting a business, or retirement. Evaluate your progress towards these goals and consider whether adjustments need to be made to your financial plan.

Above all, Financial planning is an artful masterpiece– a financial planner will flow with the lifestyle that you want to create for yourself. After we become present, we recognize the value of protection.

Second, Protection 

Protection in financial planning refers to strategies and measures taken to safeguard an individuals financial well-being against unforeseen events. The purpose of protection is to minimize the financial impact of “financial surprises” and ensure that individuals are adequately supported during difficult times. For example, someone needs a new car engine, or found a surprise leak in their roof. As mentioned, these unpleasant surprises can be pricy! It’s always best to be prepared.

Some common types of protection include; Life Insurance, Disability Insurance, Health Insurance, Property and Casualty Insurance, Emergency Fund, and Estate Planning. The two we will discuss today are; emergency funds and estate planning.

An emergency fund is a savings account specifically set aside for unexpected expenses or income disruptions. It acts as a financial cushion to cover immediate needs without resorting to debt or liquidating investments. For example, instead of going into your savings for the roof leak – the emergency fund is there to support you!

Estate planning involves creating a comprehensive plan to manage and distribute assets after death. It includes the preparation of wills, trusts, powers of attorney, and designation of beneficiaries to ensure the orderly transfer of wealth and protection of assets. This results in a flow, and lasting legacy for your family members. Check out our Amida blog: Art of an Estate Plan.

Third, Goals & Wealth Accumulation

What are your financial goals? It is important to define them clearly. Often, these are very powerful and inspiring sessions that occur with your financial advisor.

Start by clearly defining your financial goals. What do you want to achieve in the short term (1-3 years), medium term (3-5 years), and long term (5+ years)? Common goals include purchasing a house, saving for retirement, funding education, starting a business, or achieving financial independence. Next, determine the relative importance of each goal. It’s essential to prioritize them based on their urgency, significance, and feasibility. This will help you allocate your resources effectively and focus on what matters most. Lastly, develop a realistic money allocation strategy that reflects your income, expenses, and savings targets. Identify areas where you can guide your spending to free up more money for saving and investing.

Fourth, Tax Planning

Tax planning is an essential component. It involves analyzing your financial situation and employing strategies to minimize your tax liabilities. Here are some key considerations for tax planning as part of your overall planning:

Begin by familiarizing yourself with the tax laws and regulations. Know the various types of taxes you’re subject to, such as income tax, capital gains tax, property tax, and others. Tax laws and regulations can change, so it’s essential to stay up to date with relevant tax reforms and legislative updates. At Amida, we work side by side with your accountant to make sure we are taking proactive strategies. We help educate you, to ensure that you are in control of your finances – guiding and directing the way you want taxes to work for you!

Fifth, Retirement Planning

Retirement is being redefined every day. Planning is a critical aspect as it involves setting goals and strategies to secure a comfortable retirement. Here are some key considerations:

Identify what Retirement means for you: Retirement is often considered a time for relaxation, leisure, and enjoying the fruits of one’s labor. However, the desires of retirement are different for all individuals. What does your retirement look like?

Determine your retirement goals: Start by envisioning your desired retirement lifestyle. Consider factors such as where you want to live, the activities you wish to pursue, and the expenses you anticipate.

Assess your current financial situation: Evaluate your current financial resources, including savings, investments, and any employer-sponsored retirement accounts. Take stock of your income, expenses, and debts.

Estimate your retirement income needs: Calculate the income you will need during retirement to maintain your desired lifestyle. Consider your expected expenses, including housing, healthcare, travel, leisure activities, and any other factors unique to your situation.

Create a retirement savings plan: Once you have an idea of your retirement income needs, develop a savings plan to accumulate the necessary funds. Determine how much you can save each month or year and identify the most appropriate retirement accounts to utilize, such as employer-sponsored plans like 401(k)s or individual retirement accounts (IRAs).

Once you’re ready to do that retirement, or start turning your savings into income, you can work side by side with your advisor to develop the right retirement income strategy that takes into account all of the other 6 aspects. Check out Amida’s blog: Retirement in Confidence.

Sixth, Financial Independence

Achieving independence requires careful planning, disciplined saving and investing, and a focus on building wealth over time. Here are some key principles associated with financial independence:

Saving and investing: independence often involves saving a significant portion of income and investing those savings wisely. By consistently setting aside money and allowing it to grow through investments, individuals can build a nest egg that generates passive income in the future.

Managing expenses: guiding expenses is crucial in the journey towards independence. This involves money allocation, prioritizing needs over wants, and finding ways to guide our spending to attain our goals.

Long-term financial planning: independence requires a long-term perspective and strategic planning. Setting clear financial goals, developing a comprehensive financial plan, and regularly reviewing and adjusting the plan are essential steps towards achieving and maintaining financial independence.

Mindful spending and lifestyle choices: Financial independence often involves making conscious decisions about spending and lifestyle choices. This includes distinguishing between needs and wants, prioritizing experiences over material possessions, and avoiding the trap of lifestyle inflation.

Traditionally it’s always been about Retirement planning – however Amida‘s take is a little bit different. Our take is that yes, we are planning for retirement and the best strategies around that. However, we believe that if we can reach a point and mindset with financial independence we will never have to worry about Retirement. In other words, we create a life of financial independence and are ready for retirement whenever we decide to be ready for it. Retirement planning and financial independence are linked, and at this day-in-age can be separated.

Lastly, Legacy

Your legacy is every life you’ve touched. Every person who you inspired. Who you’ve helped or mentored or taught, and who has been moved by your journey and behaviors in this life.

Legacy planning refers to the process of preparing and arranging for the transfer of one’s assets, values, and personal wishes to future generations or chosen beneficiaries.

Above all, It goes beyond the distribution of assets and encompasses a broader perspective on leaving a meaningful and lasting impact on family, community, or causes that an individual cares about. Legacy planning involves considering both tangible and intangible aspects of inheritance, including wealth, values, beliefs, family stories, and personal philosophies. Be sure to read Amida’s blog: Working Towards Your Legacy.

Amida Wealth Family Conversations

At your next family or friends gathering, share this blog! Our relationship to money is a lifelong beautiful process. Amida sees finance as a beautiful masterpiece… it all comes together once a individual decides they want to create a wealthy life for themselves. Share the Amida Wealth!

Final Thoughts

In conclusion, At Amida Wealth our mission is to empower our clients to realize their true wealth. To live fully in the present and plan for the future. You never have to go through this wealth journey alone – Amida is always one phone call and email away.



218 NW 24th street

MIAMI, FL 33127

Tel. +1305.809.0790

Email: experience@amidawealth.com


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