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Introduction
- who and why?:
*
Who Uses It?
(Knowingly or
Un-knowingly....)
- governments,
corporations
and businesses
of all sizes
and shapes
- individuals
- high net
worth people
- moderate
income
households
- meager income
households
*
Roadblocks
to Financial
Success
(without
planning)
- Taxes
- Inflation /
Deflation
- Idle Assets
- Risk Management
- Human Problems
- premature
death
- outliving
your income
- disability
(short or long
term)
- attitudes
- Procrastination
- Do-It-Yourselfers
and/or Big Egos
*
Types of
advisors each
with their own advantages
and
disadvantages
-
do-it-yourself
vs.
professionals
- comprehensive
professionals
vs. specialists
(Please
see published
article not all
financial
professionals
are the same.)
- comprehensive
covers all
areas
individually
and then how
they relate to
each other
- specialist by
type of
specialty
- banking
- debt
management /
reduction /
elimination
- accounting or
taxes
- insurance
- investments
- real estate
- retirement
planning
- estate
planning
- other
- specialist by
type of client
- corporate
- small, medium
or large sized
business
- individual
households
- families
- women or men
- singles
- low, moderate
or high income
level
- super higher
net worth
usually with a
minimum
- other
- how are
professionals
(comprehensive
or specialists)
paid?
- commission
- fees
- third parties
- combination
- other
Comprehensive
Financial
Planning
Encompasses
ALL
of the
Following:
Current
Position:
*
Goal Setting /
Planning / Life’s
Direction /
Values
Determination /
Issues and
Concerns
- personal
and/or family,
household,
social
- financial
- spiritual,
emotional,
physical and/or
educational
- imposed upon
outside
influences
*
Cash Flow
Spending and/or
Budgeting
*
Discretionary
Money
- positive
- break even
- negative
*
Debt
Management,
Reduction
and/or
Elimination
*
3-Tier 6-Month
Cash Reserve
*
Net Worth
Building and/or
Maintenance
and/or
Reduction
Top
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Please
Employee
Benefits:
*
Human Related
Health Care
– medical,
dental, vision,
DI, life, and
LTC
*
Retirement
Related or
Delayed
Gratification
*
Personal and/or
Family
Business(es)
*
Other
Risk
Management:
*
Insurances
vs. needs
- now vs.
future
- health, age,
other factors
- self-insure
vs.
transferring
the risk to a
third party
insurance
company
- over insured,
under insured,
right amount
but wrong
vehicle,
correct amount
and correct
vehicle
*
Property &
Casualty
- home owners
and/or renters
- autos, boats,
motorcycles,
trailers,
campers, other
"toys and
things"
- excess or
umbrella
- various
business needs
- other
*
Human
- health or
medical,
vision, dental
- disability
(short or long
term)
- Long-Term
Care
- life
- other gaps and
issues
*
Other Purposes
- goal funding
- investments
- retirement
- estate
planning
- gift giving
- other
Tax
Management:
*
Tax Triangle
*
Before Tax
Money
*
After Tax Money
*
Tax Preparation
*
Tax Planning and
Tax Strategies
*
Other
Top
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Please
Retirement:
*
Financially
Sufficient with
3 piles of
money
*
Areas Addressed
- physically
- mentally
- spiritually
- socially
*
Various Social and
Other
Activities /
Hobbies /
Business(es)
- full or part
time
involvement
- directly
- indirectly
- passively
*
Expected and/or
Unexpected
Issues
- individual
initiated
- out of
individual’s
control
*
Long-Term Care
*
Other
Estate
Planning:
*
Values and
Goals Now and
in the Future
of both owners
vs.
beneficiaries
-
desires and/or
needs for
and/or of
survivors
-
self-directed
vs. government
dictated
-
private vs.
public
knowledge
-
how to decrease
tax
consequences
now and in the
future
*
Legal
Necessities,
Attorney
(Probate vs.
Estate Planning
- which and
why?)
- Transfer on
Death
- Simple Wills
- Living Wills
- Health Care
Proxy
- Durable Power
of Attorney
- Various
Trusts
(revocable and/or
irrevocable)
- Charity and/or
Gift Giving
*
Other
Top
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Please
Investments:
*
Goals and
Objectives and
Time Frames
- needs vs.
desires vs.
expectations and/or
vs. media /
other hype
- personal vs.
business(es)
orientation
*
Three ways to
earn a living
- can work for
it
- can have
dollars working
for you ...
intelligently
- multiply your
efforts with
others and/or
their money working
for you
*
Risk Tolerance
- ultra
conservative
- conservative
- moderately
conservative
- moderately
middle of the
road
- moderately
aggressive
- aggressive
- super
aggressive
- speculative
or gambler
*
Quantity and
Quality of
Investable
Assets
- locked in or
are they
transferable
and when
available?
*
Who controls
vs. owns vs.
manages?
-
do-it-yourself
(includes the
various 401k,
403b, 457, etc.
retirement
plans)
- financial
advisor
- professional
money manager
- other
- any
combination of
above
*
Define Vehicles
and Types of
Markets
Selected and
Why
- securities
vs.
"non"-securities
- sectors
and/or
industries
- NYSE, AMEX,
commodities,
derivatives,
private, etc.
- full service
broker /
dealer,
wholesaler /
discounter,
other
- research, how
buys / sells /
trades and/or
swaps effected
- fees,
commissions,
sales charges
(up front, on
going, later),
other costs
*
Strategies
Employed
- invest for
income now or
later vs.
growth and when
needed and how
much
-
diversification
and/or asset
allocation vs.
all-eggs-in-one-basket
- individual
stocks, bonds,
real estate,
precious
metals, art,
antiques, other
- mutual funds
- domestic,
foreign,
emerging
markets,
established
markets
- personal
whims and/or
friends, media
hype,
professional
advisors
- other
Inheritances
Received and/or
Expected
*
Who, what,
where, when,
how much and
type, any
limitations
attached
*
What are the
various local,
state and
federal tax
consequences?
For whom?
*
Other
Other
Areas As Needed
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Please
How
to Use Comprehensive
Planning to
YOUR Advantage:
*
Assists in Goal setting
individually
and with entire
family or
entire group
*
Helps establish value
systems and who
will do what
and when
*
Aids in
determination
of needs
(physical,
emotional,
spiritual,
business,
other, etc.)
- short term
jump start vs.
on-going
retainers
- comprehensive
vs. specialists
assistance
- establish
benchmarks for
progress
- perhaps one
comprehensive
professional
- multiple
specialists as
needed
*
May facilitate
obtaining
necessary
education
*
May improve or
maintain
incentive for good
health
(physical,
mental,
spiritual) to
enjoy results
sought
*
Helps in
visualizing the
"whys"
to increase
drive,
seriousness,
and personal
motivation
*
May be
resourceful
encouragement
to get all the
facts, to
think, to
make a decision
and then
act on it
- use available
free public
information
including the
internet,
libraries, etc.
- interview
several
professionals
and check
references
before choosing
/ hiring
- 80 % of their
practice should
be in the area
you need
assistance
- How’s the
"chemistry"?
Can you work
together?
*
Monitors
progress making
suggested adjustments as
needed.
Be Persistent.
*
Use of location
may necessitate
professional -
where &
when &
extra charges,
if any
- theirs,
yours, others
or neutral
ground...
Time
to Smell The
Roses
*
Planning should
pay for itself
(physically,
mentally,
spiritually,
socially and
financially)
Top
of the page
Please
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