The Importance Of Financial Planning
By Timothy Brown, MBA, CFA®, CFP®, RICP®, AIF®
With a world of information at our fingertips, you can find reviews, history, product specifications, and more details than you’ll ever need about anything you want to buy. In other words, before making a major purchase, you can arm ourselves with information to make the best choice possible.
While creating a financial plan is in a different category than buying a car or putting an offer on a home, we believe you should know what you’re getting before you pay a penny.
Because we develop custom financial plans for each client, it’s no easy task to provide one without working with you extensively. However, we wanted to share what your potential financial plan could look like so you can picture the depth of our analysis and how this understanding can benefit your future financial life. If you choose to work with us, here is a sample of what you can expect.
What Does A Financial Plan Include?
First, a financial plan is not a one-and-done deal. As you move through life and experience changes in your situation and priorities, your financial strategies need to adapt as well. That’s why we see a financial plan as a living, breathing document that requires ongoing planning, evaluating, and recommendations to ensure that you stay on track toward your goals.
Comprehensive financial plans often address a myriad of concerns and goals, from college planning to retirement income strategizing. Depending on your needs, your plan may narrow in on one element or address multiple goals you’d like to achieve over time. Whatever you choose to focus on, your financial plan is designed to serve as your road map, helping you navigate the years before, during, and after your transition to retirement.
We believe a good financial plan should give you a detailed, complete view of your current financial situation, a thorough modeling of where you want to be, and the actions you need to take to reach those goals. It should address all the pieces of your financial puzzle, from stresses and fears to your values and dreams, and include risk factors, cash flow, retirement, estate planning, taxes, education, and income strategies to help bring you clarity and guidance. It is through our planning process that we can help you prepare for life’s expected and unexpected circumstances.
The result is a simple yet powerful blueprint to guide you toward financial freedom.
Let’s Take A Closer Look
We strive to simplify financial management for our clients, so we focus on creating a summary of their situation and strategies they should be implementing or considering. And since we update our recommendations twice a year to account for any changes or concerns, this hypothetical financial action checklist serves to illustrate what a client’s plan may look like at any one point in time. The characters and circumstances are completely fictional and are for illustrative purposes only. Be sure to seek the advice of a qualified professional for your particular situation and not rely upon any of the information herein to make personal financial decisions.
First, we look at our clients’ current cash flow situation to get a big picture of their financial life. If they are already retired, we also assess their withdrawal rates.
Then we dive into more specific areas and strategies that impact their overall plan, such as tax planning, estate planning, investment management, and insurance decisions.
In addition to a detailed study of each of your goals and a clearly mapped-out plan to get you there, we also review your net worth statement at every meeting to check in on progress and watch for any trends or patterns that could affect your financial future. The end result? An actionable implementation list and a road map for your future.
Get Started On Your Plan!
If you want to learn about even more features of our comprehensive financial planning process, schedule a free introductory call by reaching out to us at (952) 303-6715 or firstname.lastname@example.org.
Timothy Brown is founder and president of Brown Wealth Management, an independent, full-service wealth management company that helps individuals and families prepare for all of life’s milestones and events. With more than 20 years of experience in the financial industry, Tim strives to help his clients live happier, more fulfilling lives with the confidence that they have been good stewards of their finances. Tim has a bachelor’s degree in finance and accounting from the University of Colorado and an MBA from the University of Minnesota’s Carlson School of Management. In addition, he holds a rare combination of credentials: Certified Financial Planner™(CFP®), Chartered Financial Analyst™ (CFA®), AIF® - Accredited Investment Fiduciary™ (AIF®), and Retirement Income Certified Professional® (RIPC®). Tim has been recognized for his hard work by receiving the Five Star Wealth Manager award in both the Mpls.St.Paul Magazine and Twin Cities business magazine since 2013.
When he’s not working, Tim enjoys spending time in Eden Prairie with his wife, Stacey, and their four children. You can often find him keeping busy by staying fit, pursuing a black belt in Tae Kwon Do with his three boys, assisting kids with Boy Scouts, and attempting to read two books per month. To learn more about Tim, connect with him on LinkedIn.