FINANCIAL PLANNING

Financial planners help people put together financial plans. They often charge an hourly rate in the neighborhood of what lawyers charge. If the clients financial situation is highly complex, the planner might even charge a retainer. The financial planner is almost inherently a one-on-one professional, almost like a good family doctor. As with the family doctor, clients go in for regular checkups and answer a bunch of questions they'd rather avoid in order to come out healthier than they went in. Instead of managing only the investment portfolio, the financial planner would help with the whole picture of insurance, annuities, estate planning, retirement planning… the whole 9 yards.

THE FINANCIAL PLANNING PROCESS

Financial planning is a process—the integrated, coordinated, ongoing management of an individual's financial concerns; a financial plan is more than a big document, a stack of investments and insurance policies, or a file of information about a specific client.

Prior to the advent of financial planning as a profession, most individuals dealt with a number of specialists who, in most cases did not work with each other to coordinate their efforts on behalf of the common client. Instead, the client had to try to integrate all the separate areas of his or her financial life. Unfortunately, the diversity of approaches and the various specialists made it difficult, if not impossible to put together a comprehensive financial plan.

The profession of financial planning was created over a quarter of a century ago to address this problem. Call me today and let's talk.

A GOOD PLAN STARTS WITH DEFINING AND PRIORITIZING YOUR GOALS

Determining your financial goals and their relative importance can be a significant challenge. Realistically, you can't expect to have everything you want, and you may even have to make difficult choices between what may seem to be necessities. But, undertaking this process can be one of the most important, and rewarding steps you will ever take. A clear financial plan can help you maximize savings for college, retirement and other goals.

Creating that plan is easier said than done. You will need to identify your savings goals, investment philosophy and risk tolerance. It is my role to provide un-emotional, independent, objective opinion, advice and help.

Financial Planning is a process of determining whether and how an individual can meet life goals through the proper management of financial resources. The financial planning process includes these six steps:

  1. Establishing the client-planner relationship,
  2. Gathering client data including goals,
  3. Analyzing and evaluating the client's current financial status,
  4. Developing and presenting recommendations and/or alternatives,
  5. Implementing the recommendations, and
  6. Monitoring the recommendations.

As a financial planner, I'm not only a finance professional but lead of a team of professional advisors.

This team is comprised of attorneys, insurance specialists and other finance/legal professionals. The process of becoming a professional financial planner requires mastering the language of insurance, investment planning, tax planning, employee benefits, retirement planning and estate planning - among many others. A financial planner is in the unique position of understanding all of the experts, coordinating their work and translating for the client. In a world of ever-increasing financial complexity, more people are seeking the assistance of someone who can focus on, and keep up with the changes that affect them. This person is the financial planner.

MAJOR AREAS OF FINANCIAL PLANNING

When I look at a client's finances I approach it with a "holistic approach" that looks at a client's entire financial universe. First, I establish a financial position (net worth) and look at cash flow (deficit and surplus). Then, in conjunction with my client we start asking questions, such as:

  • What are your most immediate and long-term financial goals?
    • Mother and Daughters
  • Are you saving enough for retirement?
  • Do you have adequate protection in the form of insurance?
  • Do you have adequate life insurance?
  • Are you saving enough for sending your child to college?
  • Are you maximizing tax credits for education expenses?
  • Do you have an adequate emergency fund?
  • Have a mortgage, car loan and other debts? Can you do better?
  • Are you maximizing your retirement contributions?
  • Are your retirement plans, 401K's invested right?
  • Have you thought about estate planning and trusts?
  • Are your assets protected from creditors?
  • Are you using appropriate tax-managed investment vehicles?
  • Do you have a well-balanced, tax-efficient investment portfolio?
  • Are you well prepared for a potential divorce, a new baby, inheritance, substantial change in income?

Together we want to make sure that your finances are well managed, planned, protected and that "the plan" is appropriately implemented and then properly monitored on an on-going basis.

The importance of an emergency fund
An emergency fund is very handy when unplanned and unexpected expenses arise. It is always advisable to have some money tucked away for a rainy day; an emergency fund can supplement any temporarily foregone income, deal with an unexpected illness or accident, or can be used for an infrequent/ unexpected purchase. Usually an emergency fund should be able to cover six to nine months of living expenses and should be held in cash accounts like checking, savings and money market accounts or certificates of deposit (CD.)

As an Accredited Wealth Management Advisor I'm bound by fiduciary duty, serving my clients' best interests ahead of my own. As part of my designations I must adhere to standards of professional conduct that include: integrity, confidentiality, objectivity, and fairness. Serving my clients’ financial planning needs I adhere to the Certified Financial Planner Board’s (CFP®) Standards of Professional Conduct, which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards (see info on the Board's website [PDF].)

This website is for informational purposes only and is limited to the dissemination of general information on products and services , not for the rendering of personalized investment advice . This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. The value of your investments will fluctuate over time and you may gain or lose money. Investment strategies or asset allocations shown may not be suitable for you.

Financial Mastery Wealth Management LLC expressly disclaims all liability in respect to actions taken based on this website. FMWM LLC does not guarantee the accuracy or completeness of the information on this site. The site is not intended to be a substitute for specific individualized tax, legal or investment planning advice. FMWM LLC is a registered investment adviser in the state of California and may only transact business in other states of the USA if first registered, excluded or exempted from state registration requirements (not having more that 5 clients in any one state outside of California.) Please read Terms of Use.