Comprehensive Financial Planning

This service is appropriate for individuals who are looking for a comprehensive approach to their financial planning, but are not comfortable handling the implementation of the recommendations themselves. The service includes two 2-½ hour presentation meetings to review your comprehensive financial plan. We will address all areas of financial planning including goal setting, cash flow management and debt reduction, investment planning with specific recommendations, tax planning, education planning, retirement and estate planning, insurance planning, stock option planning and any other issues specific to your personal situation.

A Typical Engagement:

Data Gathering

After the completion of the conceptual review, and upon receipt of the signed agreement and deposit, we will e-mail you a list of information required. You will also receive an e-mail directly from FinaMetrica, an online risk profiling system, which will provide you with logon information to take the 25 question risk tolerance questionnaire. Once we receive all of the requested information and the risk profile is completed, we will begin to review and develop your comprehensive financial plan. We may contact you to clarify some of the information.

Analysis and Plan Formulation

We will develop your plan with all of the information you have provided. Once we conclude our research and analysis and produce the final plan with our observations and recommendations, we will e-mail you to schedule a meeting for the presentation of your plan.

The following services are included:
  1. Preparation of Net Worth Statement - We will prepare your personal balance sheet.
  2. Review and Analysis of Discretionary Funds - We will review and analyze your current spending patterns and prepare an analysis which highlights current cash inflows and outflows. Together we will determine the level of discretionary income available for investment or other uses.
  3. Investment Counseling - We will help you formulate an investment strategy, structured to take into account your goal funding objectives, based upon the current economic environment, risk tolerance and tax bracket. The investment plan would provide a custom asset allocation, funded by general recommendations to achieve the investment returns necessary to accomplish your goals without introducing more risk than you are willing to tolerate. You are free to implement the allocation with whomever you please. We can be employed, upon your request, to help you rebalance your portfolio, to keep the recommended asset allocation in line and harvest tax losses as appropriate. A separate fee will be proposed for these additional services.

    An overriding goal of the plan is to control your investment costs, a feature that over time will allow you to recoup far more than the cost of this initial financial planning engagement. Embedded in this process is a great deal of investment education designed to help you understand the rationale of your overall portfolio as well as the individual characteristics of the underlying asset classes. To the extent necessary, the plan will recommend a portfolio transition strategy for transferring your assets from your current portfolio to the recommended portfolio in the most tax-efficient and simple manner possible.
  4. Education Funding Analysis - We will prepare an analysis to determine what amount should be set aside to fund the education you desire for your children or grandchildren. We will explore financial aid possibilities. Additionally, we will present your alternatives for savings vehicles and help select the most appropriate vehicles given your specific needs.
  5. Financial Independence Planning - We will prepare an analysis to determine what amount of investments and additional savings are necessary to achieve your "retirement" goals. Social Security projections and pension income will be incorporated into the analysis. We will test the sustainability of the plan using back testing, rolling periods, and bad timing. Although we cannot know exactly what the future holds, these tools do help test the viability of the plan. We will generate long-term financial projections to help you see how various financial decisions might affect your ability to fund your long-term goals.
  6. Tax Planning - If you are able to provide us with sufficient information regarding your personal tax situation, we will prepare an annual income tax projection for the current tax year to estimate your expected liability or refund based upon expected income during the tax year. We will make recommendations to adjust your withholding or make estimated tax payments if necessary. We will consult with tax professionals if necessary.
  7. Estate Planning - We will review your existing estate planning documents (wills, trusts and powers of attorney) if applicable and determine the need, if any, for any additional estate planning action. We will make recommendations regarding attorneys who specialize in drafting estate-planning documents.
  8. Insurance Review - We will review your current individual and corporate life insurance policies and make suggestions regarding the appropriateness of your coverage in meeting your current goals and objectives. We will also review and make recommendations regarding disability, long term care and property and casualty insurance coverage. We will make recommendations regarding insurance agents who specialize in the areas mentioned.
  9. Stock Option Planning - We will assist you with decisions regarding your employee stock options so that they complement your overall financial plan. We will review your specific stock option grants (both incentive and nonqualified stock options) in light of your personal financial situation, including your federal and state marginal tax brackets, net worth, personal objectives, risk tolerance and need for cash. We will consider external factors, such as interest rates (i.e., opportunity costs) and the prospects for an increase in value of your company's stock.
  10. Other Services As Needed - We will be available for consultation on major purchases and/or the refinancing of mortgages.
Presentation Meeting

This meeting will typically be held 8-10 weeks after receipt of all of the requested information.

We will present and review the financial plan that has been prepared with you over the course of two 2-½ hour meetings. We will discuss all of the analyses and provide you with a detailed written list of action items to be implemented. Full payment of the balance for actual fees incurred is due at the conclusion of our second presentation meeting. At this point, you will hold a personalized blueprint, custom designed to help you meet your financial goals.

Plan Implementation and Follow-up

Proper implementation is crucial to achieving your financial goals. Phone and e-mail support will be available for a period of sixty days commencing with the second presentation meeting. During this period, we will answer your questions as you implement your plan.

Fee:

The fee for the Comprehensive Financial Plan is based upon the amount of time expected to be involved in preparing and presenting the comprehensive financial plan. This will vary depending on the work involved and the complexity of the client's situation. The fee may be tax deductible.*

Typical Fee Range:

$3,000 - $10,000 +
* Please note: Investment fees and expenses are classified as "miscellaneous itemized deductions" and subject to a 2% limit of a taxpayer's adjusted gross income.