What will a Financial Plan do for You?


VALUE OF PROCESS vs PERFORMANCE

 

Investors without a disciplined financial planning process often do not buy and hold their investments. Instead, they buy and sell frequently, trying to time the market so that they win the “best-performing” investment. When you focus solely on performance, it’s much like using a rearview mirror to steer a car. It tells you where you’ve been, but nothing about where you’re going in the future.

By transferring what has happened in the immediate past into the future, you may end up following the herd into an overvalued investment and overlooking opportunities in the undervalued funds.

For a better approach your long-term economic goals, financial professionals recommend having a disciplined planning process in place. Instead of focusing on having the best-performing investment each quarter or each year based on past growth, you should invest based on a consistent, sutstainable process designed to help you reach your investment objectives.

A disciplined process – over time, may help keep you from timing market mistakes that tend to detour you from your financial destination.

Our IGNITE FIRE Finanical Planning Process is designed and customize to help meet our clients’ goals.



WHAT WILL A FINANCIAL PLAN DO FOR YOU?

 

Consolidate assets into readable Net Worth Statement

  • Review titling of assets for appropriateness.
  • Document Analysis
    • Investment Statements
    • Insurance Policies
    • Wills/Trusts
    • Company benefit statements

Income Tax analysis

  • Investment Tax analysis.
  • Review tax efficient investments.
  • Coordinate with tax advisor

Asset Allocation of entire portfolio

  • 92% of performance is based on proper allocation.
  • Analyzing Standard Deviation and BETA.
    • Reduces risk and enhances performance.
  • Balancing assets among classes properly.
  • Performance analysis of current assets to peers.
  • Fee analysis of current assets to peers.

Calculation of Financial Independence objectives.

  • How much should be saved? How much capital is needed?
  • What investment vehicles fit the asset allocation model?
  • Tax strategies & Inflation hedging.
  • Social Security projections.
  • Pension Plan projections.
  • Year-by-Year projection of values.
  • What assets are the best to draw income from?

Calculating Life and Disability amounts based on your input

  • What type of insurance is suitable for you?
  • Who should own the insurance?
  • How long should you own it?

Review of Wills and Trusts.

  • Are they up to date?
  • What type should you have? (AB Trust, Credit Shelter Trust)
  • Tax savings and strategies for probate and estate taxes.
  • Gifting Strategies.
  • Long Term Care analysis.
  • Coordination with Legal advisor

Recommendations

  • Coordination of Personal planning and business planning
  • Risk/Reward issues
  • Repositioning assets
  • Updating estate documents
  • Evaluating insurance coverages
  • Analysis of tax-saving strategies
  • Matching objectives with strategies

Implementation

  • Timeline
  • Establishing priorities
  • Checkpoints
  • Follow-through with institutions

Annual Updating