What's in a Financial Plan?Submitted by Reby Advisors | Certified Financial Planners | Danbury, CT on February 1st, 2016
A financial plan is generally defined as a comprehensive evaluation of an individual's current and future financial situation, including predicted future cash flows, asset values, and withdrawal plans. But, specifically, what's in it?
Though each financial plan that Reby Advisors creates is customized for each client, our financial plans include several core components. Whether you're an individual who just entered the workforce or a couple fast approaching retirement, here's what you can expect to be included in your financial plan:
Lifestyle Sustainability Scorecard™
We start by taking score. Our Lifestyle Sustainability Scorecard™ measures your susceptibility against 15 critical risk factors that could negatively impact your family's lifestyle. Few people score a perfect 100, with most scoring between 40 and 60 at first.
Our financial plans help address your financial vulnerabilities. Dramatic score improvements, with final scores between 85 and 90 within 12 months, are common when clients follow our advice.
Short- and Long-term Life Policy Clarifiers
Next, we help you define and clarify your short- and long-term financial and lifestyle goals. These Life Policy Clarifiers provide guidance both in planning for the future as well as in assessing your progress. These clarifiers set the stage for the financial planning advice and asset allocation recommendations that follow.
Opportunities and Recommendations
Your financial plan will also reveal "Opportunities to Capture" along with specific action steps that we would do if we were you. These opportunities often align with the risk factors found on the Lifestyle Sustainability Scorecard. Working on these opportunities will help to improve your score, and most importantly, the likelihood of being able to sustain your lifestyle throughout retirement.
Probability of Retirement Ruin
Here we discuss the critical issues that could have a huge impact on your financial success or failure as well as list specific recommendations designed to bring the probability of retirement ruin down to a more acceptable level.
Existing and Recommended Allocations
Here we analyze current asset allocations and recommend an allocation that better aligns with your goals.
The financial plan concludes by answering "Where do we go from here?" The bullet points in this section contain concrete steps that you can take immediately to begin improving your financial future.
Achieving your dream of a financially secure retirement is possible, especially when you have a score you can improve, clarified financial and lifestyle goals, and a financial plan prepared by Reby Advisors.
Click here to contact us today and get started on your financial plan!