Financial Life Planning
A Financial Life Plan is a written document designed to assist an individual to make choices and take specific action based on projections of a particular future scenario. The projections may include a spending plan based on current income and lifestyle, or a to test a future set of income and spending circumstances. Other elements of a complete financial life plan may include income tax planning, insurance coverage, retirement cash flow, investment strategies, college funding and end of life transition. Clients may desire to include life change planning as well, including transition after divorce, new job or opening a business, reinventing life after children move away or to plan for chosen life activities during retirement or the age of meaning.
Financial Life Plan Modules
Vision and Goal Setting - a process that encourages clients to determine what they want their life to look like now and in the future. Once a vision for a different financial future is captured, then a series of goals and action steps are designed to pursue and eventually attain each goal. Mindset exercises on how to move beyond any limiting beliefs may be included.
Spending Plan/Cash Flow Management - a process to examine current spending behavior and recommendations on how to align spending with core values and the pursuit of personal long-term goals.
Retirement Planning - a complete analysis of whether current retirement funding is adequate to reach client’s goal to reduce or end their working career. The plan includes recommendations for any necessary increase in saving, what investment options may be appropriate and how to balance spending plan between current lifestyle needs and future lifestyle desires.
Insurance Analysis - an analysis of current insurance coverage, including life, disability, long term care and annuities along with appropriate recommendations of options that might better address client’s objectives. An emphasis on obtaining the most desirable coverage for the most affordable price is our focus.
Investment Portfolio Design - a complete analysis of client’s current investments, including whether the portfolio has too much risk and is designed in alignment with client’s long term goals. While My Financial Design believes asset allocation has the potential to reduce risk and increase gains, each individual client deserves a personally designed portfolio based on their ability to manage emotions that may arise during market volatility. The process to determine the most suitable investment strategy takes time, and education is a key component so every client feels confident that they understand and are involved in the proper portfolio design for them.
Tax Planning - an analysis of current tax liability with an eye toward integrating appropriate strategies that seek to minimize client’s tax burden. A projection of future tax liability based on a new cash flow scenario is considered. Recommendations are offered with the caveat that they should be reviewed with a tax professional before implemented.
Asset allocation does not ensure a profit or protect against a loss.
