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Financial Planning Services
Our Financial Planning Services include various financial planning modules you can mix and match to provide a coordinated financial plan specific to your situation. Or you can focus on one module of particular importance to you at this time.
Ø Financial Life (Retirement) Planning: $400 - $750
Includes all of the following:
· Capital Needs Analysis Reports and Graphs – Helps those still working and those already retired project their retirement and spending needs in order to determine:
i. The amounts to appropriately save and invest.
ii. Spending levels desired in retirement.
iii. The reports and graphs may be run multiple times to compare various alternatives. For instance, you may wish to compare the impact of retiring at age 67 versus 60. Up to six alternate planning scenarios are included.
· Monte Carlo Simulation Analysis – Illustrates the effect that the yearly fluctuation of investment return and inflation can have on portfolio survival as compared to the Capital Needs Analysis, which assumes a fixed average yearly rate of return and inflation. For instance, a person retiring at the start of a bear market for stocks will need a much higher initial portfolio than will a person lucky enough to retire at the start of a bull market. The Monte Carlo analysis runs 1,000 simulations varying yearly investment returns and inflation around the averages to project the probability that your portfolio will survive to your life expectancy. This critical projection will help you establish a much more realistic retirement plan.
· Net Worth Statement – Like a balance sheet for a family, this document lists your assets, such as your home and investments, and your liabilities, such as mortgage debt or credit card debt. This gives you a current snapshot of your overall net worth.
· Cash Flow Analysis – An analysis of your income and expenses.
· Presentation Meeting – Your completed module is presented and explained to you in an interactive setting.
Note – Successful Financial Life Planning requires a well-diversified portfolio with known risk and return characteristics similar to the Recommended Portfolio developed in the Investment Planning – Recommended Portfolio module discussed below.
Ø Investment Planning – Recommended Portfolio: $300
Includes all of the following:
· Moneymax® Financial Personality - A report outlining your style of dealing with money, along with a discussion of how that impacts your views of investment risks and choices. This report will give us insight into how to structure your investment portfolio in an effective way that also provides you with a greater peace of mind over time. Up to two individual profiles are included, so differences between you and your partner can be highlighted and discussed.
· Recommended Portfolio – Based upon your goals, investing time horizon and risk tolerance, you receive a professionally designed investment portfolio recommendation that matches your objectives. All recommended mutual funds are no-load funds readily available at Ameritrade. Our relationship with Ameritrade includes access to institutional funds, which carry much lower expense ratios than funds typically available to retail investors. However, if you prefer to execute the portfolio with a different brokerage house, mutual fund recommendations can be altered as necessary.
The recommended portfolio is tactically managed (the asset allocation is tailored to the current market environment) and therefore a paid subscription to periodic updates and twice-yearly review meetings is strongly recommended. For details, see Plan B, under Self-Directed Plans, in the Investment Management Plan section below.
· Presentation Meeting – The recommended portfolio is presented and explained to you.
Optional Add-ons:
· Include 401(k) and other Qualified Retirement Plans in Recommended Portfolio
i. The Recommended Portfolio cannot be used for most 401(k) and similar qualified plans where the investment options are severely limited. However, retirement plan recommendations can be added to the Recommended Portfolio as an optional add-on.
ii. The overall portfolio is balanced to include the impact of the 401(k) investments. Every attempt is made to make allocation recommendations within the 401(k) Plan that utilize the better options available within the particular Plan. Then the taxable portfolio is adjusted to arrive at an overall portfolio asset allocation consistent with the Recommended Portfolio.
iii. This add-on cost varies depending on the 401(k) Plan.
· Current Portfolio Analysis: $10 per existing security ($150 minimum)
i. You will receive a detailed investment analysis report via Morningstar Principia Pro software that helps us compare the Recommended Portfolio to your current investments. You receive Morningstar pages for the mutual funds and stocks in your current portfolio.
Ø Qualified Retirement Plan (QRP) Recommendations: $300 for first Plan, $150 per additional QRP
Includes all of the following:
· Recommended Portfolio - Based upon your goals, time to retirement, risk tolerance and available mutual funds offered in the Plan, you will receive a list of the recommended mutual funds to use and the appropriate asset allocation across those mutual funds.
· Recommended Portfolio Analysis – A detailed investment analysis report via Morningstar Principia Pro software outlining the key characteristics of the recommended portfolio.
Optional Add-ons:
· Current QRP Portfolio Analysis: $10 per existing security ($150 minimum)
i. You will receive an investment analysis report via Morningstar Principia Pro that helps us compare the Recommended Portfolio to your current allocation within the Plan. You receive Morningstar pages for the mutual funds in your current selection, where available.
Ø Improved Cash Flow / Budgeting: $ 250
Includes all of the following:
· Moneymax® Financial Personality - A report outlining you and your partner’s style of dealing with money, along with a discussion of how that impacts your views of investment risks and choices. This report will give us insight into how to assist you in your approach to budgeting and spending in an effective way that also provides you with a greater peace of mind over time. Up to two individual profiles are included.
· The book, Money for Life, by Steven B. Smith introducing the Mvelopes® Online Budgeting System. This revolutionary new tool allows consumers to track spending by category in real time, just like the old manual cash system of dividing up spending cash for the month in various envelopes labeled, groceries, electricity, etc. This remarkable system highlights unnecessary spending in your budget, and helps virtually everyone find wasted dollars that they can apply to reduce debt or increase savings.
· One Hour Initial Consultation to review your Moneymax® Financial Personality and prepare for your use of the Mvelopes® System. This meeting will prepare you to establish your cash flow and spending goals within the Mvelopes® tool.
· 30 Minute Follow-up Review Meeting in approximately three months to assess the achievements you have made in your monthly cash flow and discuss any necessary adjustments.
Ø Insurance Review: $200 - $475
Includes all of the following:
· Summary review of your life insurance, including:
i. Estimation of final expenses, such as funeral costs, medical expenses and estate settlement costs, for each partner, plus an estimation of survivor’s future income needs, factoring in other income for the surviving partner.
ii. Estimated life insurance needs, now and in the future, on each partner.
iii. Recommendation on the most appropriate type of any additional life insurance, if any. For example term, whole life, variable universal life.
· Summary review of your disability insurance, including:
i. Discussion of difference between disability obtained through your employer and that obtained personally.
ii. Calculation of estimated disability insurance requirements based on income and expenses.
iii. Comparison of estimated disability insurance requirements to current coverage.
· Summary review of long-term care insurance coverage.
· Review of liability limits on home, auto and umbrella insurance.
· Professional referrals to reliable insurance agents specializing in the products you may need.
· Presentation Meeting – your completed module is presented and explained to you.
Note – this is not an in-depth analysis of your insurance coverage. For instance, the property coverage and limitation and exclusions on your policies are not reviewed. For help understanding your policies, contact the insurance company or your agent.
Ø Education Expenses and Savings Recommendations: $200 - $1,000
Includes portions of the following as appropriate for your situation:
· Assistance in projecting the college costs for your children, or others you wish to help.
· Based on the projected costs, estimations on the savings rate necessary to reach your college funding goals.
· Informative material on several options for college savings, including the advantages and disadvantages of each. These materials are tailored to residents of Texas, and include information on 529 Plans, Coverdell Accounts, and custodial accounts. The potential impact of the options on financial aid is also discussed.
· Estimate for Expected Family Contribution (EFC) in order to assess likelihood and extent of qualifying for college financial aid.
· Specific recommendations regarding investments for college savings.
· Presentation Meeting – Your module is presented and explained to you in a meeting budgeted for one hour. If additional time is required, it is billed at the normal hourly rate.
Ø Estate Planning: $200 - 500
Includes portions of the following as appropriate for your situation:
· General information on estate planning, including wills, trusts, powers of attorney, etc.
· Estimates of your estate tax and probate liability.
· Recommendations for:
i. Guardianship of minor children.
ii. Sufficient liquidity to cover funeral costs, estate settlement expenses and taxes.
iii. Distribution of all estate assets in accordance with your desire.
iv. Proper timing of estate distribution at appropriate ages of heirs.
v. Prudent management of all estate assets and properties.
vi. Regular program of family gifts to utilize the annual gift exclusion.
vii. Reducing the expected taxable estate by using the unified gift exemption.
viii. Gradual transfer of assets into the spouse’s name to equalize shares.
ix. Charitable contributions or trust.
x. Special annual support.
· Professional referrals to estate planning attorneys and other specialists, if needed.
· Presentation Meeting – Your completed module is presented and explained to you.
Ø Income Property Analysis: $200 - $450
Includes all of the following:
· Ten-year projection of profitability for one property including projected yearly and annualized return on investment.
Note - Each additional property is $100
· Suggestions of strategies to maximize your profitability including tax-free exchanges, refinancing and tax reduction strategies.
· Presentation Meeting – Your completed module is presented and explained to you.
Ø Tax Review: $200 - $375
Includes all of the following:
· Summary review of your last two years of tax returns.
· Red Flag review:
i. Review of your deductions.
ii. Review of your income.
iii. Review of all your other tax schedules and forms.
iv. We will be looking for items on your tax return that indicate financial planning opportunities for you.
· Professional referrals to CPAs and Enrolled Agents if necessary.
· Presentation Meeting – The completed module is presented and explained to you.
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