I recently read Carl Richard’s “The One-Page Financial Plan” and was impressed with Richard’s approach to working through some complex financial issues. In particular, he focused almost exclusively on the emotional issues that investors face. What does money mean to the investor? What are the investor’s goals? It’s these issues that overwhelm many investors to the point where they give up or procrastinate for years.
For folks that need a plan and don’t know where to start, this is a useful resource. It’s simple and easy to follow and the principles are very similar to what I employ with my clients. This is a great guide to help investors think about money in terms of goals and how to get on the same page with a spouse on what the future looks like. It is the most difficult part of financial planning.
It lacks specificity and implementation ideas. Since every investor has a unique situation. This makes the title of the book a little misleading since you don’t end up with a true financial plan on one page. The book doesn’t go into detail about growth rate assumptions or serial payments or how to calculate time value of money. Rather it focuses on concepts at a high level.
If the goal is to starting thinking and talking about the future, this is a great place to start.