Financial Planning

Financial Planning Input & Assumptions
Creating a personal financial plan may be useful in helping establish your goals and creating the steps to achieve them. While modern software is extraordinarily precise in its calculations, the veracity of the financial plan is dependent on the accuracy of compounding inputs and assumptions.

While it is difficult to predict one's financial life over the course of decades, each day we can make decisions to prioritize, build wealth and create options for yourself, and those you love.

Please click here for a one page PDF on "Financial Planning Input and Assumptions"

Financial Planning Output & Report
Below please find a sample output of a MoneyGuidePro "On Course Personal Financial Navigation" plan deliverable. This plan reflects the prospects of a typical middle aged, upper-middle class suburban family; Joseph (53) and Mary Jones (50), plus their two teenage children. Their gross earnings from work is $130,000 per year, with $355,000 in financial assets. 

The base scenario demonstrates that even if every input and assumption is correct (which is impossible), and the only variable is investment returns, the results may differ widely. The median result is an ending portfolio value of $1.222 million (page 12 of 43), which sounds pretty good. However, they have a greater than 25% chance of depleting all of their financial assets, and another 25% chance of the portfolio exceeding $2.886 million when the survivor passes. Thus, a 50% probability sits beyond either of those two extremes. We also review the impact of reductions in Social Security income, and the potential enormous value of their home decades in the future, which could be unlocked in their plan.

Thus, creating a one-time financial plan may not be sufficient. Rather, clients may benefit from the ongoing advice of a Certified Financial Planner professional. By being proactive, we seek to create possibilities, rather than just estimate probabilities.

Please click here for a sample output of an "On Course Personal Financial Navigation" plan deliverable


Distinctive Advice in the Areas of Wealth Management & Workplace Retirement Plans

Please call us at (626) 773-4244

Click here to ask us a question