Financial and Estate planning process

Financial and Estate planning is a process in which coordinated and comprehensive strategies are developed and implemented for the achievement of one’s overall financial objectives. Strategies developed by your team cover what we call the five pillars of Financial Planning. These pillars are Taxes, Estate Planning, Cash Flow, Insurance and Investments. The five pillars need to work together and complement each other to have an effective overall plan. Your active involvement is essential in creating a successful estate plan which reflects your needs, priorities and wishes in light of established legal constraints.

Step One

Initial Meeting - Information & Data Gathering: The information gathering process starts by finding out how assets are positioned and what their values are. The information you supply may include, for example, tax returns, brokerage statements, current value of real estate holdings, insurance policies, social security statements, wills, trusts, estate planning documents, or business agreements. Another important piece of information is how much debt and in what form it has been incurred. The more information that is available, the more accurate the process will be. Clarification of Client’s Goals & Objectives: What planning issues does the client think are most pressing? Does the client have children that need resources for advanced education? At what ages does the client want to retire? Where you want to retire and in what lifestyle? Are there any current or anticipated health issues? Are there any special needs for your spouse or children? How do you want your estate distributed?

Step Two

The second step in the process is for your advisors to process and analyze the information you provided. It’s also the time to consider any unfavorable situations that might happen, such as disability, unemployment, serious illness or untimely death or other risks. What type of risks can the plan afford to take? Your family and estate plan needs to be prepared in the event of any of these catastrophes. What strategies make sense? What alternatives need to be considered? What are the advantages and disadvantages of each alternative? What’s the best plan considering the resources available? The end result of this process is for your financial professionals to come up with a plan that is effective, can be implemented and understood.

Step Three

The next step in the investment planning process is implementing the strategies to make the plan a reality. Does the presented plan address all of your concerns? All this planning is designed to help you. The end result must create a plan that is acceptable, comfortable and affordable. Once you accept the plan, it has to be implemented. Depending on the complexity of your estate, this step may require multiple meetings with your financial professionals.

Step Four

Monitor and review your plan: Estate Planning and Wealth Management is truly a dynamic and ongoing process. Economic environments and governmental regulations can change. Sometimes family situations and goals can change as well. Your plan needs to keep up with these changes to be successful. Your overall plan and its components need to be reviewed to ensure it’s keeping up with the times and working as designed.