A Relationship Driven Financial Planning Process
A Deeper Dive into the Planning Process
Phil utilizes a thorough, yet transparent, approach to financial planning, resulting in an in-depth, easy-to-follow financial plan. This process moves beyond simple asset management to focus on comprehensive, goal-based wealth analysis.
1. Assessment (Discovery & Data Analysis)
This is the foundational step where the "current state" is mapped out.
Comprehensive Data Gathering: Beyond just account statements, this includes gathering and analyzing crucial financial documents such as tax returns, insurance policies, estate documents, and detailed income/expense data to establish a complete financial picture.
Risk Profile & Investment Philosophy: Conducts a detailed risk profile to determine the client's objective capacity for risk (time horizon, liquidity needs) and their subjective tolerance for risk (comfort level with volatility). This analysis determines the optimal balance of potential reward and acceptable risk.
Defining Goals and Priorities: Clarifies and quantifies specific financial objectives, such as desired retirement age, required annual retirement income, education funding needs, and legacy goals.
2. Portfolio Construction (Strategy & Design)
The data gathered in the Assessment step is used to design a customized strategy.
Goal-Based Portfolio Design: Constructs a custom portfolio aligned with the client's specific time horizons and risk profile, focusing on managing critical risks like sequence of returns risk (especially near retirement).
Tax-Efficiency Review: Integrates your role as an Enrolled Agent (EA) to review the allocation of assets across various account types (taxable, tax-deferred, and tax-free) to help maximize tax-efficient growth and future withdrawal strategies.
Integrated Risk Management: Analyzes insurance coverage (life, disability, long-term care) to ensure foundational protection is in place before implementing investment strategies.
3. Statistical Analysis & Goal Setting (Testing the Viability)
This crucial step involves stress-testing the plan to provide an objective outlook.
Retirement Stress Testing: Utilizes sophisticated financial modeling, such as Monte Carlo simulation, to rigorously test the viability of the financial plan under thousands of potential market and economic scenarios.
Probability Analysis: Provides clients with a clear, realistic statistical analysis of the probability that their current financial trajectory and saving/spending habits will support their desired retirement lifestyle and goals.
Identifying Gaps: The analysis objectively highlights areas where the current trajectory may fall short of the stated goals, making it clear where adjustments are needed. The emphasis is on the principle that proactive planning and early implementation maximize the potential for success.
4. Guidance (Implementation & Ongoing Review)
The final step is translating the analysis into action and committing to an ongoing partnership.
Actionable Strategy Development: Provides clear options and prioritized, actionable strategies to help clients confidently bridge any identified gaps and achieve their retirement goals.
Coordination with Network: Facilitates the implementation of recommendations that fall outside of wealth management by coordinating with the client's (or Phil's) network of estate attorneys, mortgage brokers, and other professionals.
Periodic Review: Commits to an ongoing partnership through scheduled reviews to monitor progress, update planning assumptions based on life events (e.g., career changes, new family members), and adjust strategies in response to economic or legislative changes.
Phil utilizes a thorough, yet transparent, approach to financial planning, resulting in an in-depth, easy-to-follow financial plan. This process moves beyond simple asset management to focus on comprehensive, goal-based wealth analysis.
1. Assessment (Discovery & Data Analysis)
This is the foundational step where the "current state" is mapped out.
Comprehensive Data Gathering: Beyond just account statements, this includes gathering and analyzing crucial financial documents such as tax returns, insurance policies, estate documents, and detailed income/expense data to establish a complete financial picture.
Risk Profile & Investment Philosophy: Conducts a detailed risk profile to determine the client's objective capacity for risk (time horizon, liquidity needs) and their subjective tolerance for risk (comfort level with volatility). This analysis determines the optimal balance of potential reward and acceptable risk.
Defining Goals and Priorities: Clarifies and quantifies specific financial objectives, such as desired retirement age, required annual retirement income, education funding needs, and legacy goals.
2. Portfolio Construction (Strategy & Design)
The data gathered in the Assessment step is used to design a customized strategy.
Goal-Based Portfolio Design: Constructs a custom portfolio aligned with the client's specific time horizons and risk profile, focusing on managing critical risks like sequence of returns risk (especially near retirement).
Tax-Efficiency Review: Integrates your role as an Enrolled Agent (EA) to review the allocation of assets across various account types (taxable, tax-deferred, and tax-free) to help maximize tax-efficient growth and future withdrawal strategies.
Integrated Risk Management: Analyzes insurance coverage (life, disability, long-term care) to ensure foundational protection is in place before implementing investment strategies.
3. Statistical Analysis & Goal Setting (Testing the Viability)
This crucial step involves stress-testing the plan to provide an objective outlook.
Retirement Stress Testing: Utilizes sophisticated financial modeling, such as Monte Carlo simulation, to rigorously test the viability of the financial plan under thousands of potential market and economic scenarios.
Probability Analysis: Provides clients with a clear, realistic statistical analysis of the probability that their current financial trajectory and saving/spending habits will support their desired retirement lifestyle and goals.
Identifying Gaps: The analysis objectively highlights areas where the current trajectory may fall short of the stated goals, making it clear where adjustments are needed. The emphasis is on the principle that proactive planning and early implementation maximize the potential for success.
4. Guidance (Implementation & Ongoing Review)
The final step is translating the analysis into action and committing to an ongoing partnership.
Actionable Strategy Development: Provides clear options and prioritized, actionable strategies to help clients confidently bridge any identified gaps and achieve their retirement goals.
Coordination with Network: Facilitates the implementation of recommendations that fall outside of wealth management by coordinating with the client's (or Phil's) network of estate attorneys, mortgage brokers, and other professionals.
Periodic Review: Commits to an ongoing partnership through scheduled reviews to monitor progress, update planning assumptions based on life events (e.g., career changes, new family members), and adjust strategies in response to economic or legislative changes.
Send us a message:
Send us a message!
Thank you for your submission!