Comprehensive Financial Plan
A comprehensive financial plan entails 4 specific areas of an individual's financial situation.
1. Cash and Liquidity
2. Debt
3. Insurance
4. Investments
Wisdom Investments follows a process where the client, with the assistance of Wisdom Investments, identifies their values, goals and objectives. After review and analysis of the client's situation, a plan is structured in a way to ensure that the client has done everything possible to achieve their goals and live their values. While this is the intent of the plan, there is no guarantee that the client will achieve their goals.
The process of aligning an individual's goals and objectives with their values entails the following,
1. A review of the clients current budget and if the client does not have one, reasons to establish a budget and the various budgeting techniques and used by others,
2. A review of the clients emergency account,
3. A review of all debt with the goal being how to manage the debt and whether to eliminate it,
4. A review of all types of insurance with a recommendation as to each type which entails,
a. Do you need the insurance?
b. What type of the insurance do you need (e.g. term or whole life, 3 year LTC or Lifetime LTC, etc)?
c. How much of the insurance do you need?
5. An assessment of an individual's investments as well as an assessment of whether their investments fit together with their risk tolerance. The client will be furnished with a report detailing an analysis of their current holdings, asset classes, investment performance and asset fees. In addition, the client will receive an Investment Policy Statement, which is a document which the client or the client representative can use to select and monitor investments. Specific investments are not recommended, however, asset classes as a percentage of the total portfolio are recommended.
6. Cash flow and retirement income and expense projections from the date of the plan through the projected date of death with the goal being to answer the question will the clients have enough assets to last till their projected date of death.
The fee for a comprehensive financial plan will vary depending on the complexities of an individual's situation and will be based on average hours taken to complete a plan of this type. The minimum fee for a comprehensive financial plan is $3,500.00 and takes approximately 20 hours to complete. 50 percent of financial planning fees are due at the signing of an engagement letter and the balance is due upon completion of the engagement. If at the time of the engagement Wisdom anticipates that the fee will be more the client will be informed of the cost and agree to the cost prior to any work being completed.
