Driving the financial highway: good roadmap will help avoid potholes.

• Author: Sergeant, Deborah Jeanne

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The old adage "If you shoot for nothing, you'll likely get it" accurately sums up financial planning. Without a roadmap for the future, you'll wind up like a tourist who packs a suitcase in his car and leaves home without a destination in mind. He may stumble across places of adequate lodging, dining and entertainment, or he may wander aimlessly. Financial planners help guide people on their journey to achieve long-term financial security and short-term goals. Using sheer willpower to "save up" doesn't seem to work for most people. "According to recent reports, consumer savings is at one of the lowest levels it's ever been," said Nancy Bear Usera, senior vice president corporate development of Alaska USA Federal Credit Union in Anchorage. "Financial security and independence depends upon having a comprehensive plan." Setting goals represents the first step in achieving a financial plan.

GOING BACKWARD

Glen Bobo, director of the Wealth Management Group for The Wilson Agency in Anchorage, said that people "need to see what they want and work backward. The mistake people make is that they hop on a plan saying, 'This sounds good. I'll put some money in and see what I can afford.'"

This non-plan can be disastrous for people looking forward to retirement.

"Couples need to talk to each other about what kind of life experience they expect when they retire, instead of thinking of what they are retiring from," said Dennis Wilt, owner of Dennis E. Wilt and Associates, financial planners that operate in Vancouver, Wash., and Anchorage.

The options may be to work fulltime at a second career, pursue artistic or philanthropic endeavors, work part-time, travel, or retire to a different part of the country or a combination of these options.

Similarly, people seeking to help their children finance their college education should get an idea of how they want to approach that goal. Should they pay for all or part of the education? Should they cover the first two years and allow the student to cover the rest, or pay part of the tuition each year? Further clarifying the goals also can help prepare.

Bobo wants clients to "put price-tag goals" so that they can, with their financial advisors, plan more accurately.

TOO LITTLE, TOO LATE

Unfortunately, many people underestimate how much their goals will cost. Wilt said that many people believe their expenses will decrease 30 percent to 40 percent when they retire.

"My experience is that living...