Roth IRA you only pay taxes on the money that your money makes in the IRA when you withdraw it and not the money that you contributed to it. Even if you withdrew every penny that you put into it, as long as you don’t withdraw the income that your money made you won’t pay taxes on it until you do.The last thing a financial plan should include is your final provisions, better known as your will. No one likes to think about dying, but let’s be honest we all have to do it sometime.

Grief over the loss of a loved one is tough enough without adding the burden of financial distress to it. Your plan needs to include a will and all related financial and insurance documents with it and an estate plan or trust that is designed to match your financial situation.

While those should be the main components of a financial plan, there are other things that need to be considered. The stage of life you are at now. If you are in your twenties now you can afford to take more risk with your investments because you have more years to make up for any investment losses. If you are in your forties you might want to be a little more conservative.Your lifestyle is another consideration. If you are a spender and not a saver you have to be realistic about whether or not you are willing to curb some of that in order to have a better financial future.

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