On-going Financial Planning services are ideal if you are not the do-it-yourselfer type, truly dislike personal finance, don’t have the skill, or simply are just too busy with your life and career. We can help you avoid the angst that many people feel regarding the implementation and staying on track with their Financial Plan.
Once a written Financial Plan is created, you have 3 basic options on what to do with it:
- Implement it yourself
- Pay someone to implement it for you
- Let it sit on the shelf
If you are a strong do-it-yourselfer, have the skill and the time, then the first option may work for you. But most people fall into the other 2 categories. The purpose of our On-going Financial Planning service is to serve you if either of the last two instances applies to you.
On-going Financial Planning is professional assistance for the implementation and staying on track with your Financial Plan.
Koski Research Study included “Staying on Track”
An online study among a sample of the general public was conducted by Koski Research. 1,000 Americans aged 21-75 completed the study. It was found that “Staying on Track” scored the lowest of the 4 areas of the study. Ironically, consumers ranked “Confidence in Reaching their Goals” as the highest.
View full report at Charles Schwab Koski study results.
Benefits of On-going Financial Planning
You just spent anywhere from $1,200 to $5,000 for a professionally written Plan. Why should you consider spending more money to implement it? Because the truth is that most people do not implement their Plan or stay on track with it. The evidence by the Koski study and other similar studies is real.
Whether it’s a matter of time available or skill required, most people need help staying on track. The risk is that if the Plan is not implemented properly, you will not achieve the desired goals. Some benefits of our On-going Financial Planning service may include:
- Accountability partner to keep you on track
- Financial professional access (not a salesperson)
- Fee-only, non-commissionable advice
- Advice goes well beyond just investment management
- Bundled services at low subscription level cost
The bottom line benefit is you may have a better chance of meeting your goals!
What if I Already have an Investment Management Provider?
If you have a broker-dealer and are paying a yearly Assets Under Management (AUM) fee, you may be asking yourself, “doesn’t this have me covered?” Well, it may or it may not. Some key questions to ask your provider are:
- Is there a written Financial Plan from which the AUM services are based on?
- What is included in my AUM fee? Is it a percentage of assets or a flat-fee?
- Who is responsible for implementing the non-investment portion of the Financial Plan?
- Do I receive written documentation on how the investment portfolio performance is impacting my goals?
Ultimately, you have to decide if you are getting your money’s worth for your AUM fee. If you would like a comparison, see our Investment Management Services. Our On-going Financial Planning services go hand-in-hand with our Investment Management.
Our On-going Financial Planning Services
To help you implement your Financial Plan and stay on track, we have a variety of on-going services available. These services can be tailored to your specific situation, as each client is different in what may be needed. These are examples that should give you a good idea of what could be performed in your situation.
At the 1-year anniversary of your original Financial Plan, we recommend a portfolio review. It’s important to assess if the asset mix has changed from the original design due to the fluctuations in various market segments. It is recommended to rebalance the portfolio once per year to reset the asset mix back to its’ original design.
At this review meeting, we will review your investment goals, risk-tolerance levels, and any other pertinent investment documents such as 401(k) and IRA statements. You will receive a written action plan update on any new recommendations.
Once per year, we will do a review of the appropriate retirement components of your financial plan which may include a Social Security update, a new probability of success calculation, an updated Roth Conversion assessment, and a Long-Term Care review.
It may also be time to look at your Medicare coverage plan and determine if there is a lower cost plan with better coverage that is available for you, depending on your specific medical requirements.
Financial Health Check-Up
Your financial health is constantly changing. You may have taken on some additional spending, bought a new car, or paid off a large debt. You may have set new goals, such as saving for a home improvement project or special vacation. Any of these would have an impact on your overall financial health.
Cash flow management should be looked at once per year to put any of these changes in perspective and evaluate the impact on your overall Financial Plan. We will perform the analysis based on these changes and provide you with an update on obtaining your long-term financial goals. We’ll include recommendations and an updated action plan.
Many times, an improvement to your financial situation can be obtained by better tax planning. We do not perform tax returns. However, we do look at your previous years’ tax returns to find any way we can save you tax dollars. We also look for ways that may potentially drop you into a lower tax bracket. And finally, we will work with your designated CPA or tax preparer on any issue we find that may require their advice.
We perform this service in the last quarter of the tax year, to help you better prepare any changes needed on your end prior to December 31.
We will walk you through your existing estate planning documents such as Power of Attorney, Medical Power of Attorney, Will, and Trust to make sure they are up to date with your beneficiaries, executors, guardians, and trustees that meet your current criteria.
With proper estate planning, your entire family benefits!
What to Do Next?
Firstly, if you don’t have an original written Financial Plan, please consider investing in that first. Then you will have a Plan that can be implemented and updated on a regular basis. To create an original Plan, visit our Financial Planning Fee-only Services page.
Secondly, consider the On-going Financial Planning service described on this page. We will help you determine which combination of these services is the best fit for you.
Thirdly, consider our flat-fee or very low AUM Investment Management Service. We will help you determine which is best for you.
You will now have an on-going Financial Plan at a very reasonable cost that will provide you with many benefits for you and your family. All at subscription-level cost.