AN HOLISTIC APPROACH TO DEVELOPING YOUR PERSONAL FINANCIAL PLAN
Comprehensive financial planning is first considering all areas of your particular financial situation and then developing a plan to reach your specific goals. By employing a disciplined and comprehensive process, you can integrate your financial decisions with your broader life goals and increase the probability of achieving them.
A comprehensive financial plan generally includes the following: cash flow analysis, investment review, tax analysis, retirement planning, risk management (particularly, an insurance evaluation), education planning and estate planning.
Once your financial information is organized and understandable, you will gain control and understanding of your finances and investments. This will allow you to build a context for making good financial decisions and establishing clear goals for achieving your life dreams.
A Six-Step Process is used:
- Introduction - Establishing and defining the client-planner relationship
- Discovery - Gathering client data
- Clarity - Analyzing and evaluating your financial status
- Ideas - Developing and presenting recommendations and/or alternatives
- Implementation - Implementing the financial planning recommendations
- Review & Update - Monitor and update recommendations whenever needed
The details of your financial situation will be carefully examined, including:
Personal Goals - To clarify, quantify and document your personal and financial goals.
Balance Sheet - To detail your assets and liabilities and calculate your net worth. Your balance sheet will give you an accurate picture of your current financial position and provide a gauge to measure your financial progress over time.
Cash Flow Statement - To examine your annual income and expenses so we can suggest changes to better align your current money management practices with your longer-term goals and objectives.
Tax Planning - To provide estimates of your tax liability for the current calendar year, as well as future years, and offer recommendations on steps you can take to reduce it.
Capital Needs Analysis - To determine what you need to do to retire and/or reach other funding goals. Using a variety of assumptions, we test different scenarios and guide you in making optimal decisions.
Investment Review - To review your existing investments (both your taxable and tax-deferred accounts) to evaluate the design and implementation of your total portfolio. We assess your investment strategy and risk profile relative to your financial goals and objectives. Finally, we recommend a personalized asset allocation for your total portfolio.
Employee Benefits Review - To review your employee benefits program(s) and make recommendations to help you get the most from the choices offered.
Deferred Compensation and Stock Options Planning - To help you understand your stock options, deferred compensation, restricted stock rights, and related corporate benefits.
Estate Planning - To review estate planning documents and make appropriate recommendations. In addition to wills and trusts, we work with you to plan for possible incapacity, for control over the maintenance and disposition of your assets, for reducing tax burdens and for making gifts.
Charitable Planning - To assist you in identifying charitable giving opportunities and structuring strategies to fulfill your objectives.
Please Note: Financial Planning services are offered through Cambridge Investment Research, Inc.
