Comprehensive Financial Planning

What We Can Do For You

• Assist in defining goals and time horizons

• Determine risk tolerances for asset allocation

• Examine tax impact of different strategies

• Utilize Monte Carlo simulations to determine the statistically probable outcome of plan

• Follow-up at least annually to update plan and discuss changes

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Financial planning is the collaborative process of integrating all relevant elements of a family’s personal and financial circumstances to maximize the potential to meet their life goals. By establishing risk tolerances, time horizons, and goals, we build holistic plans that account for your unique personal and financial situations.

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Determine Your Financial Goals

With individuals and families, this may begin with a retirement plan. The first step in building a financial plan is determining your financial goals. A "goal" for planning purposes is a clearly defined objective that has a 1) deadline, 2) a dollar amount, and 3) a measure of importance in your life. For example, a goal could be wanting to buy a $30,000 sports car in 5 years or paying for a child's college education. 

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With institutions, we examine the investment policy statement. By analyzing cash flow requirements, investment time horizon, risk tolerance, liquidity needs and tax status, we formulate a long term strategic asset allocation of stocks and bonds.

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Determine Your Risk Tolerance

In order to find what investments are most appropriate for you, we will consider the probability of your plan succeeding, the portfolio allocation, and your Risk Tolerance Score. Risk measures how high or low your investments will potentially go. For example, a low-risk investment might rise by 4% or fall by 4%. By contrast, a high-risk investment might rise by 10%, but then it might fall by 10%.

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Monte Carlo Simulation

To simulate the returns of your recommended portfolio, we utilize a Monte Carlo simulation to test the viability of your investments in relation to achieving your goals.

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A Monte Carlo simulation will run thousands of simulated investment returns based on historical returns against your recommended portfolio. These hypothetical values are then aggregated together to build a probable outcome for each year in your plan. 

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