Financial Planning

Budgeting is a key step within financial planning. Financial planning is a comprehensive process that lays out your short- and long-term goals like retirement, sending your kids to college, or wealth accumulation, and developing strategies to achieve them. Your plan could include, investment strategies, tax planning, risk management, and estate planning. The focus is on creating a roadmap for sustained financial security.

Budgeting, on the other hand, is a tactical process that involves creating a detailed plan for managing income and expenses over a specific period, usually monthly or annually. The primary goal of budgeting is to control spending, ensure sufficient cash flow, and avoid debt, thereby supporting your broader financial plan.

So, financial planning is strategic and long-term, while budgeting is operational and short-term.

See more differences between budgeting and financial planning.

Planning with us means you have a better way to money. It starts with a conversation about your life and what's important to you. Your advisor's expertise will help reveal blind spots and identify the opportunities that others might overlook. As you work with your advisor, you can tailor your plan from our exclusive portfolio of financial products. Each is designed to meet you where you are, at every stage in your life, helping to identify and address any gaps you might have. Discover more about financial planning.

First, get matched with the right financial advisor for you. At your first meeting, your advisor will ask you deeper questions and listen closely to fully understand your goals and what's most important to you. With a holistic view of your financial picture in focus, they'll tailor your plan to your priorities. Let's get you prepared for your first meeting. Here's what you need to know.

Financial advisors make money in different ways, and often, fees depend on what you're asking your advisor to do for you. There's also the possibility that your advisor may not charge you a fee. Most of our advisors will design your financial plan free of charge. However, some advisors could charge a fee for certain types of planning, but they'll let you know up front. Want to know more about how advisors make their money? This article lays everything out.

Nope. You have a better way to money with us. Our holistic approach to financial planning starts with where you are, wherever that is. And the sooner you start, the bigger opportunity you'll have to set yourself up for financial success now, and later on. Get matched with an advisor.

You can do all the things that are important to you now, and down the road. Once you have your personalized financial plan from Northwestern Mutual, you can see:

• What it will take to reach your goals
• The progress you've already made
• Blind spots that otherwise might have been overlooked
• Opportunities you can take advantage of

Let's get started on your plan. Find your advisor now.

Financial planning encompasses several types, each tailored to specific goals:

Retirement Planning:

Helps make sure you have sufficient funds for a comfortable retirement through investments, savings, whole life insurance, and guaranteed income in retirement.

Investment Planning:

Focuses on creating a diversified portfolio to help you reach your short and long-term wealth accumulation goals.

Insurance Planning:

Assesses risk and determines the right insurance solutions to help safeguard against the unexpected.

Education Planning:

Finds ways for you to save and invest so that you can help fund a child's educational expenses.

Long-Term Care Planning:

Makes sure that you have a plan in place to help pay for the expenses of care if you have a chronic illness or debilitating injury that keeps you from caring for yourself.

Estate Planning:

Prepares for the distribution of assets after you pass away, including wills, trusts, and inheritance planning to protect your assets to benefit your beneficiaries.

Debt Management:

Develops strategies to help manage and reduce debt effectively to help improve your financial stability.

Tax Planning:

Involves investment and insurance strategies to help minimize gains and losses as well as inheritance and estate taxes.

Business Planning:

Creates strategies for growth, operational continuity, future leaders, business succession, risk management, and personal wealth.

Each type addresses different aspects of financial well-being, contributing to a comprehensive financial strategy. Find out the must have components of a good financial plan.

One of the biggest benefits of your Northwestern Mutual financial plan is that it can give you the confidence to do the things you've always wanted to—without worrying if you can afford to. In fact, independent analysis has shown that clients who follow a comprehensive approach to planning experienced better outcomes.¹ So you'll be set up for success from the start. Let's get started on your plan. Find your advisor now.

Absolutely. Our Northwestern Mutual Private Client Group offers an exclusive, comprehensive approach to private wealth management. While we're the size of Fortune 500 company we have the specialized expertise of a boutique firm. Find your Private Client Group advisor.