FULL SPECTRUM FINANCIAL GROUP TAKES YOU BEHIND THE SCENES OF DEVELOPING A FINANCIAL PLAN

By Steve Griffin, CFP^® and Kelly Goldstein, CFP^®

Do you know all the variables that go into a comprehensive financial plan? When financial advisors from our team at Full Spectrum Financial Group design a financial plan, they cover all facets of our clients’ lives with a focus on their values, goals, and dreams. We are proud of the scope of our data-gathering process, the breadth and depth of what we include in the financial plan itself, and our focus on planning first and creation/implementation second.

Providing a sample financial plan along with a step-by-step description of the discovery and analysis process we used to create it, this article illustrates how we construct a financial plan in its entirety. For the purposes of this article, we’ll use fictitious clients, Frank and Joanna Miller. Mr. and Mrs. Miller are a good example for this article because of their strong cash flow, balance sheet, and uncertainty about how to use their resources to optimize their financial future.

INITIAL MEETING

It all starts with an initial meeting. We begin with understanding what our clients are hoping to accomplish. When determining whether we’ll be creating a financial plan for them, clients are typically looking for clarity on several concerns, including whether they can retire at the age they want, what age they should claim Social Security, and if they’re being tax-smart in their savings plan.

Essentially, the initial meeting’s goal is to determine how much value we can contribute and to gauge whether the client is motivated to work with us.

DISCOVERY

Once the Millers decide to move forward, we begin the discovery phase. During this key step in our process, we dive deep into understanding the Millers’ finances from both a quantitative and qualitative perspective. We weigh these considerations equally because their values, goals, and objectives are just as important to us as crunching the numbers.

The more we understand what’s most important to clients like the Millers, the better we can customize their financial plan. When it comes to the numbers, we’re meticulously thorough in the collection and review of the financial data, including assets, liabilities, income, expenses, tax returns, legal documents, etc. In short, we leave no stone unturned in discovering where the client is and where they want to go.

ANALYSIS AND DESIGN

Armed with a solid understanding of the Millers’ goals, concerns, and current financial landscape, we then get down to the crux of the planning process: the analysis and design phase.

We first project their current plan over their lifetime in what we call their “base facts.” This shows us how well they would be positioned if they didn’t make any changes to their current plan. It also shows us what would happen if no major financial events occurred.

We use this analysis as a guide to determine what changes, if any, should be made to improve their plan to create financial longevity. We think stress testing financial plans is a critical step, yet it’s an often-overlooked practice in the industry.

So we model events like:

• Bear market during client’s planned retirement

• Premature deaths

• Increased taxes and inflation

• Unexpected healthcare expenses

SAMPLE FINANCIAL PLAN

Below, take a look at the sample financial plan we created for our fictitious clients, the Millers. You’ll notice that each page of the Millers’ plan incorporates information we gathered during our thorough discovery and analysis process.

DELIVERY

Once the analysis phase is complete, areas for improvement identified, and the plan finished, it’s time to deliver the plan to Frank and Joanna. Some action items might need to be implemented right away; others may take months or even years to accomplish. 

We believe it’s crucial to continually monitor, review, and update the plan. It doesn’t do any good to put the plan in a drawer and ignore it. Even if the Millers only implement some of the action items we suggest, their lives can undoubtedly improve. Our goal is to meet with clients like the Millers at least once a year following plan delivery to verify they’re on track to pursue their goals.

GET STARTED

At Full Spectrum Financial Group, our goal is to guide you toward the future you want! The financial plans we develop compile the information you give us into an all-inclusive blueprint. That blueprint gives you the tactics and guidelines you need to confidently pursue all your financial goals.

Once you’ve had a chance to review this sample financial plan, reach out to us by calling (941) 866-6570 or emailing info@fullspectrumfinancialgroup.com.