The first step is to gather the necessary data to ensure a thorough understanding of your situation. This becomes the basis for the creation of a financial model, which is used to evaluate your current financial situation. It will show your current asset allocation, your net worth, the direction and rate of its change, your cash flow, income and estate tax liability and other items. Also, we'll review your current investment strategy, risk exposure, wills, trusts, insurance policies and any other legal arrangements you've created.
Step two is to develop your personal financial objectives concerning all financial, tax and estate matters. Frequently, our clients say "it's to make sure that I have a source of income that I cannot outlive, and secondarily, to leave a legacy for my family, and, perhaps the community". But often it's more complex, and involves thinking about things that you have never considered, prompted by questions that perhaps you have never been asked.
Step three consists of identifying problems that are present in your current planning because of a lack of coordination between financial, tax and estate planners. It is in this third step that the full benefit of the planning process becomes apparent. Issues that you never thought of, problems that you never realized existed will be identified - simply because your financial picture was never so completely developed, and your objectives never so clearly and completely stated.
Step four entails the development of recommendations - specific strategies for implementation. Equipped with pro's and con's of each, and an economic model to determine their impact, you'll be in the best position to determine which is right for you. Many strategies you will elect to implement, some now, some in the future, others you will reject. But the decision will be yours. The agreed upon strategies will be reduced to writing in a comprehensive report.
The fifth step is implementation. This is where all advisors will be instrumental. We will act as the coordinator between your estate attorney and CPA, ensuring that all planning items get implemented properly.
Step six is the ongoing review process. Every year, an update of your plan is done to evaluate any changes in the economy and the tax law, as well as in your personal situation. As a result of this process you can be comfortable that your plan continues to be up to date.