THE IMPORTANCE OF FINANCIAL PLANNING
Your financial goals are as unique as you are. A solid financial plan will help you understand the implications of your financial decisions and will also take the guesswork out of managing your finances. One of our CERTIFIED FINANCIAL PLANNER™ professionals can help clarify your long and short-term goals and develop a strategy that will help you understand the big picture and provide peace of mind.
THE STEPS TO SUCCESS
1. During our initial meeting, we’ll identify and prioritize your objectives. We’ll explain the services we provide, and discuss compensation, your responsibilities and how decisions will be made.
2. Next, we’ll begin gathering information. You’ll begin the process of pulling together the necessary documents and financial information, and we’ll discuss your personal and financial goals, your comfort level when it comes to taking risk, and the timeframes that correspond to each of your goals.
3. Once we have all the data together, we’ll begin to analyze your unique financial situation. We’ll take into consideration your assets, liabilities and cash flow, investments, tax strategies and current insurance coverage to create the strategies and scenarios that will help you reach your goals.
4. Our analysis will result in a proposal. We’ll meet together to go over the details of our recommendations. It’s important to us that the decisions you make about your financial plan are informed decisions, so we are careful to explain our rationale and address any and all of your questions and concerns during this part of the process.
5. Now we begin to take action. We’ll decide how the recommendations will be carried out as we put your financial plan into motion. We’ll check in with you to conduct a 3-6-month review as appropriate, as well as an annual review.
6. During the ongoing years, we’ll meet regularly to keep track of life and goal changes and new opportunities, and will continue to make adjustments to keep your plan up to date.
YOU HOLD THE KEYS
The Financial Planning Standards Board suggests that the following six areas of personal financial planning are key.
1. Financial Position: By examining net worth and household cash flow, we can determine in what time and to what degree your personal goals can be accomplished.
2. Protection Planning: This is when we analyze the best way to use insurance to protect your household from unforeseen risks. Risk categories include liability, property, death, disability, health and long-term care. Utilizing insurance investment products can be a vital part of your overall plan since insurance enjoys tax benefits.
3. Investment Management: Most people's investment portfolios are purpose driven. In other words, you want to plan to accumulate a certain amount of money by a certain time to reach an important goal, such as the purchase of a home or funding your child's college education. We'll use a number of strategies including asset allocation in order to diversify risk and overcome the rate of inflation to help you reach your goals.
4. Tax Planning: Since income taxes are generally one of the largest expenses in a household, we'll implement tax reduction strategies throughout your financial plan. We'll work with you to get the most benefit from government incentives in the form of tax deductions and credits, as well as from the multitude of tax breaks available.
5. Retirement Planning: Understanding how much it will truly cost to live comfortably during retirement and creating a plan to distribute assets in case of need are the essentials of being prepared for your retirement years. We'll evaluate and analyze all available options and scenarios to fit your specific situation.
6. Estate/Legacy Planning: Leaving a legacy that's aligned with your values is an important part of your total financial picture. We'll help you plan the most effective way to minimize estate taxes while maximizing the amount of your assets that will be distributed to your heirs.