The Financial Planning Process
Our process starts with a fact-finding meeting to identify your goals, your dreams, and your needs. We then thoroughly review all the moving pieces in your financial life including income, expenses, assets, liabilities, pension plans, Social Security benefits, insurance policies, estate plans, real estate, and other investment holdings.
Next, we prepare a custom report to answer questions such as:
- When can I retire?
- Am I saving enough?
- How should I invest?
- What are the chances of my resources running out before I do?
- What can I reasonably afford for college, weddings, etc., and still maintain my own financial independence?
- Do I have the right kinds of insurance? Am I paying too much?
The third step is to create a road map toward your goals. This includes specific action items to diversify your investments, minimize taxes, preserve your estate and manage risks that could de-rail your plans.
The fourth step, implementation, is the most important of all. The best-laid plans are meaningless without action. We will meet with you periodically to review action items and monitor your progress, providing assistance as needed. If you wish, we will collaborate with your attorney, CPA and other advisors. If you choose Prosperity Planning as your investment manager, we will implement a customized investment strategy specific to your goals and resources.
Finally, your financial strategy and investment plans are dynamic. Therefore, it is important to meet with you on a regular basis to monitor changes in your plans and provide ongoing financial advice.
Our Approach to Investing
Successful investing fuels your financial security. We focus on time-tested investment principles and avoid short-term market timing. We believe that a strategic mix of investments (bonds, U.S. stocks, foreign stocks, real estate, commodities, etc.) influences your investment returns more than picking the right stock or mutual fund. Following the herd is not our style. We believe that investing in less popular “value” stocks provides greater rewards over time.
We also believe it is critical to understand and minimize your total investment costs. After all, it’s not what you make, it’s what you keep! With our Prime Portfolio Services and Preferred Asset Management Programs, we use only no-load or load-waived funds. We employ index funds and exchange-traded funds as core positions to minimize costs. All applicable fees are clearly disclosed to you in writing prior to investing.
Ultimately, investing is all about your net after-tax returns. Some investments provide attractive pre-tax returns, but are not tax efficient in the long run. We utilize strategies such as tax-deferred accounts, Roth contributions and conversions, municipal bonds, tax-loss harvesting, low-turnover funds, and charitable gifting as appropriate for your particular tax situation.
Other important aspects of our portfolio management process include:
- Daily pricing of your portfolio and its component investments
- Rebalancing as needed to maintain proper allocations
- Review of your portfolio for adherence to your investment objectives
- Quarterly performance reports
Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results