The Sound Impact of Financial Planning

Recent Vanguard1 research shows that an experienced wealth management team not only adds peace of mind, but also may add about 3 percentage points of value in net portfolio returns over time. What does this mean? Your team has the ability and the time to evaluate your portfolio investments, meet with you to discuss objectives, and help get you through tough markets. All of these factored together potentially add value to your net returns (returns after taxes and fees) over time. But the most interesting part of this research is that it shows that financial planning and financial coaching contributed to the greater majority of the added net 3% in net portfolio returns.

It’s important to realize how valuable making sound financial planning decisions are, and the value that is added by your financial planning team. As investors, our emotions can be our worst enemy, especially when the markets are volatile, and guidance from a “behavioral coach” can save us from panic-selling and abandoning long-term financial plans. Numerous studies demonstrate that advisors can have a huge impact on investor finances, but it’s hard to say if these findings have been recognized and understood by everyday investors.


1Vanguard research study; Source: Francis M. Kinniry Jr., Colleen M. Jaconetti, Michael A. DiJoseph, and Yan Zilbering, 2014. Putting a value on your value: Quantifying Vanguard Advisor’s Alpha. Valley Forge, Pa.: The Vanguard Group.

Financial Planning Process

6 Key Steps to a Successful Financial Plan

A CONVERSATION

In order to get to know you and understand your goals and objectives. This is an important conversation to establish a foundation for our relationship. Any initial questions or concerns will be discussed free of charge.

GATHERING INFORMATION

We will need to gather important data for analysis such as investment statements, tax returns, insurance policies, etc. In addition, we run through an exercise to determine your own unique level of risk tolerance using the risk number method.

ANALYZE THE DATA

To determine if you are on a realistic path to pursuing your goals and objectives, analyzing the data is a key step in the financial planning process. This includes measuring the risk within your current investment portfolio and financial plan, then stress testing them under unexpected financial variables, both positive and negative.

MAKING RECOMMENDATIONS

Your advisor will make recommendations and specific action items regarding your plan and investment portfolio will be discussed. We will visually review the stress test results of both the current and recommended plans and portfolios. We work with and provide references to qualified professionals as needed, i.e. CPAs and Estate Planning Attorneys.

IMPLEMENTING YOUR PLAN

Our goal is to do all we can to ensure transactions are executed promptly and smoothly. A plan is only as good as its implementation! Our goal is to continually educate you on healthy investment practices during this entire process.

MONITORING THE PLAN

A good advisor will continuously monitor your investment portfolio and financial plan, which includes adjusting and rebalancing it to accommodate ever-changing economic and personal circumstances. This involves regular review meetings, critical to the success of the overall plan.

WHAT DOES DREAM, PLAN, ENJOY MEAN TO YOU?


Vicki Breen
Investment Advisor & Financial Planner

Bob Cheatham
Certified Retirement Plan Specialist®

Laine Miller
Investment Advisor & Financial Planner

Margaret Marapao
Investment Advisor, CFP®

Our Core Values

THOUGHTFUL INDEPENDENT FIDUCIARIES

Our clients have placed us in a position of trust and we take that duty seriously. As fiduciaries for our clients, it means we follow a high fiduciary standard of care that requires us to put your interests above our own.

YOU CAN TRUST THAT WE WILL ALWAYS:

  • Act in your best interest
  • Be transparent about costs and fees associated with our services
  • Disclose any conflicts of interest that may be present when providing recommendations
  • Help you understand all of the options available to you
  • Provide prudent investment advice
  • Avoid high cost or high commission products
  • Be truthful with you about the risks you take when investing

If you are worried that the advisor you are currently working with may not be acting in your best interest, schedule a meeting with us and get a second opinion. The initial consultation is complimentary and it may help put your mind at ease.

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