National Financial Planning Week isn’t traditionally celebrated like National Breast Cancer Awareness Month, or other “special” months. There aren’t any special documentaries on television, no one wears colored ribbons, or runs in 5k charity races. We don’t even send cards to our financial advisors…

But maybe we should.

Financial planning is important. It might not save lives in a medical way, but it certainly protects lives in a financial way. That is what financial planning is all about – security. By carefully and comprehensively planning for your financial future, you can help to protect yourself, your family, and your estate against both foreseen and unforeseen events. Knowing that you have a solid financial plan to lead you into the future means that you have one less thing to worry about when scary, stressful unexpected events occur – such as medical emergencies or job losses.

Besides protecting the people, places, and things in your life, planning for your financial future also protects your goals. Having your finances in order is just one way that you can move toward your ideal lifestyle. Maybe your goal is going back to school, purchasing the home of your dreams, or going into business for yourself. An active and independent retirement is also a goal. Many people no longer feel confident that they will be able to rely on pensions or social security checks after they have retired. Most goals take more planning than just a savings account and good intentions. Financial planning involves long term strategic management…but it is worth it.

Not too many years ago, financial planning was an administrative challenge to say the least. It was difficult to see your entire financial picture across all of the often “siloed” financial vehicles of insurance, savings, investments, real estate, and trusts, among others. The paperwork, phone calls, and meetings alone could be overwhelming. Lucky for us, today’s financial advisors understand the importance of comprehensive wealth management. Like the doctor who examines his patient from head to toe before concentrating on a specific ailment, the financial advisor who can assess the entire financial picture before making specific recommendations is better able to develop and institute a successful course of action.

To streamline the paperwork and administrative work of financial planning, many of today’s best advisors turn to technology. Your advisor might provide you with a personal financial homepage that aggregates all of your financial investments, savings, accounts, etc. onto one easy-to-use web page – giving you 24/7 access to all of your financial information in just a few clicks of a mouse. Check it everyday, check it once a month, check it once a quarter, it’s up to you. The point is that it is there, organized and at your fingertips, when you need it.

So stop making excuses. Find a qualified financial advisor and put together a comprehensive plan that encompasses your entire financial picture. Then next year in the first week of October, send your advisor a thank you note for helping you to secure your future.

Edmond Walters is the Chairman and CEO of eMoney Advisor, an award-winning provider of web-based, holistic wealth planning solutions to the financial services industry. For more information, visit www.emoneyadvisor.com

Tiffany Bass Bukow is the CEO & Founder of the #1 Personal Finance Website for Women and Families – www.msmoney.com. My life mission is to help people and the world thrive through creating companies that provide money, career and life skills education.

Tiffany Bass Bukow is the CEO & Founder of the #1 Personal Finance Website for Women and Families – www.msmoney.com. My life mission is to help people and the world thrive through creating companies that provide money, career and life skills education.

If you are an entrepreneur or small business owner, you are the one who’s in control regarding your financial future.  There is no one else to rely on when it comes to saving and planning for the future, so you must take on this matter yourself.  The thing is many traditional savings and retirement plans are unavailable to you due to income limitations.  Here are a few savings options for entrepreneurs and small business owners.

Solo 401(k)

A solo 401(k) plan is a great alternative to the traditional 401(k), and was created for self-employed individuals, entrepreneurs, and small business owners with no full time employees.  The only exception to this is if the small business owner’s spouse is an employee.  Solo 401(k) plans have simplified administrative rules, unlike their traditional counterparts.

The advantage of a solo 401(k) is that it is simple to use and maintain.  You may contribute up to $13,000 of tax-deferred income, in addition to up to 25% of profit from your business.  As long as you contribute no more than $41,000 annually, you fall within the limits of the solo 401(k).  The amount you contribute to a solo 401(k) is completely discretionary and can be decreased or suspended at any time.  Additionally, loans against your plan, as well as hardship withdrawals may be allowed.  Rollovers from previous 401(k) plans are allowed as well.  

There are a couple of drawbacks to the solo 401(k).  Naturally, there is a cost to establish and administer a solo 401(k), which may or may not be desirable for the individual investor.  Solo 401(k) plans may not ultimately end up meeting your needs for you and your business.  If your business grows, you may end up needing to hire on additional full-time employees.  When this happens, you are no longer eligible for a solo 401(k), and must revert to a traditional 401(k), which is far less simple to administer.

SEP IRA

An SEP IRA, or Simplified Employee Pension Individual Retirement Account, is a savings and retirement tool that can be used by both small business owners and self-employed people as well.  SEPs are considered part of a profit sharing program, and the employer may contribute up to 25% of a qualifying employee’s income to the fund.

SEPs are affordable and simple to administer, and is an excellent benefit to provide to employees.  If an individual is self employed, they are still able to put aside a little over 18% of their net profit, which is a powerful savings tool indeed.  Contributions to the plan are tax deductible, and standard income tax applies to the money once it is withdrawn for retirement use after the investor reaches age 59½.  Additionally, its high contribution limits make it very attractive ($46,000 in 2008).

One of the drawbacks of this type of retirement plan is that it is seen strictly as a profit-sharing plan, so employees must have another savings vehicle if they wish to put more money away on their own.  There is no catch-up payment clause for those who started saving later in life, as there is with the solo 401(k).

SIMPLE IRA

Savings Incentive Match Plans for Employees (SIMPLE) IRAs are fairly simple to administer, no-hassle IRA plans that offer a great benefit for employees in your small business.  Recommended for businesses with 10 or fewer employees, it s a great savings tool to offer for employees, and benefits both parties in the process.

SIMPLE IRAs allow employees to contribute up to $10,500 of their annual income to the plan.  Employers match this amount as part of the process.  Employees are then vested and are eligible to receive this money upon reaching retirement age.  Contributions are tax deductible.

For business owners, the drawback of this type of account is that the employees doesn’t have to earn his or her vesting, but is vested once the account is opened.  That means matching someone dollar for dollar who may not be around to help you grow your company may not be a sound investment.  SIMPLE IRAs are also very strictly administered and cannot be rolled over, nor can a traditional IRA or 401(k) be rolled into a SIMPLE IRA.

SOLO DB Plan

This plan is a slimmed-down version of a standard defined benefit plan.  If you are looking to save a whole lot of money over a short period of time and have the resources to do so, this is the plan for you.

Like other retirement plans, contributions are tax-deferred and the money is available to you once you reach retirement age.  These plans are very popular with people in business for themselves who are over 50 years of age, due to the ability to save vast amounts of money in a short period of time in order to meet future income requirements for retirement.

The drawback for this type of retirement account is that investors must be willing and able to contribute ongoing mandatory contributions of at least $45,000 for five consecutive years to keep this plan going.  For many, this amount of money is simply not possible.  For the well-compensated small business owner or entrepreneur, however, this account could be just perfect.

By Ginita Wall, CPA, CFP®

While it may not always feel like it, your divorce  is more than just an ending. It can be the beginning of an exciting new chapter in your life. In the months and years after divorce, a myriad of new options will unfold. And the best part is—you’re in charge now. Whatever your goals may be, your life is uniquely your own, and you’re in the driver’s seat.

Map your financial future. As you approach the end of your divorce, it is likely you will have weathered the largest single financial and legal transaction of your life. No matter how well you do financially in the divorce, it can be scary. Often the six- and seven-figure lump sums that are obtained from a pension rollover or retirement plan or the sale of a house are one-time, non-replaceable assets. This is serious money and it must be carefully invested based your new circumstances. Making the right decisions for this one-time windfall can go a long way toward making sure you have a comfortable retirement, provide for your kids’ college education and even leave a legacy for your grandchildren.

Find the right direction. Suddenly being on your own to deal with such issues as money, children, and career changes, and the need to make decisions on the family home can feel overwhelming. Peace of mind comes from having a course of action for the days ahead and a strong support team to guide you. Be sure to choose a financial planning professional who specializes in navigating the divorce process.

Build your recovery team. There is a burgeoning field of financial advisors who specialize in providing advice on the financial questions people face during and after divorce. One designation for such a specialist, the one I have received, is the Certified Divorce Financial Analyst (CDFA) accreditation. It is not the only certification for the specialty so you may find advisors with other certifications as well. Your divorce recovery team should also include a qualified accountant and estate-planning attorney. You may even want a therapist, career counselor, or QDRO specialist (for pension or retirement account divisions) on board. Working with the right people will contribute greatly to restoring your feelings of well-being and self-confidence.

Ask the right questions. How much will it cost you to live post-divorce and how will you generate income? How much spousal support will you receive and for how long? What is the most efficient way to split retirement accounts and take receipt of the money? How might a business or medical practice be offset? Would you benefit from a lump sum payment rather than monthly spousal support? What should you do with the house? Most important of all, what should you do to manage your settlement post-divorce?

Your financial team can help you identify your unique needs and goals going forward. But it’s not only about the facts and numbers. It’s equally important to integrate the softer, subjective issues you face. The process of moving forward is as important as the final terms of the divorce decree. Really great financial planners are not simply strategists but also compassionate mentors and guides.

Begin to enjoy your new life. Money is intertwined with every aspect of your life—your home, your children’s education, even the quality of your health care. As you enter the new road of life ahead, consider your options: set goals, take a class, plan a trip, or find a new job. Creating goals for yourself, learning new skills, and keeping busy will help you feel a sense of purpose and empowerment. That is not to say you won’t have low times. Everyone does. But the bad days will be fewer as the good ones become more frequent.

I know that divorce is one of the most emotionally difficult events you will ever experience. But believe it or not, over the years I have seen thousands of people who went through the divorce process and not only survived, but thrived. That is what I wish for you. Time to rebuild…and flourish!

Ginita Wall, CPA, CFP® is a Certified Divorce Financial Analyst in San Diego, and is director of the non-profit Women’s Institute for Financial Education (www.WIFE.org). She is author of eight personal finance books, including The ABCs of Divorce for Women and the booklet “150 Ways to Divorce Without Going Broke” and is a columnist at Divorce360.com.

Reprinted with permission from the Women’s Institute for Financial Education www.Wife.org and www.MoneyClubs.com. Founded in 1988, WIFE is a non-profit organization dedicated to providing financial education for women. Copyright 2008