Financial Planning is provided to clients who wish to get a clear picture of their current financial condition and their ability to reach specific financial goals in the future.
- Financial Goal identification
- Retirement income forecasting
- Education savings needs
- Creating and utilizing a budget
- Business funding
This service involves identification of financial problems and goals, based on careful collection of all of the financial data that is necessary to create an analysis of the full picture, offer solutions to problems, suggest strategies for reaching goals and minimizing the risks involved. We’ll partner with you to help you see and reach your goals.
A Case Study in Financial Planning
John and Jean
- Married couple, wife age 34, husband age 35
- The wife recently returned to work full-time
- She has a 401(k) plan with a 4% employer match
- They have a joint savings with $5,000.
- Household expenses of $4,000/month
- $500 per month excess income (after household expenses)
Question: Should Jean contribute the $500/mo to college funds for her girls or to her 401(k) plan at work?
Answer: The Smith family should first…
- increase their savings to $12,000 from the $5,000 they now have in the credit union
- then contribute the $500 per month to her 401(k) plan at work. That amount will reduce their income taxes by $1,500 per year, maybe more, plus the 4% employer match will increase her retirement plan value with no effort on her part.
The next task on their financial plan list will be for them to
- As residents of Alaska, set up college fund accounts for their 2 children and fund it with the Alaskan Perm Fund dividends annually
- And finally, set up a ROTH account and contribute the tax savings (from the 401(k) plan participation) to it annually