There are 3 (three) approaches to Financial Planning: Single issue, Multi-purpose or Comprehensive plans.
Your CERTIFIED FINANCIAL PLANNER™ will determine which approach best meets your financial needs, goals and objectives based on data-gathering information provided by you the investor/client.
(note* CERTIFIED FINANCIAL PLANNER™ words in all caps is not an error throughout the website, this is a Legal requirement by the Certified Financial Planning Board of Standards in usage of their Trademark requirements)
Based on the CFP (Certified Financial Planning) Board of Standards, below are the specialized services a Crystal Brook Advisor, CERTIFIED FINANCIAL PLANNER™ offers:
- Investment planning and Advice
- Pension/Retirement Planning
- Comprehensive Planning
- Estate Planning
- Portfolio Management
- Income Tax Planning
- Insurance Planning
- Education Planning
- Elder/Long Term Care Planning
- Closely-Held Business Planning
- Financial Planning
- Employee Education
- Income Tax preparation (note* consult with your tax professional for filing of your taxes)
- Divorce Planning
Additional Financial Planning, Investment Advice and Management Services include:
- Digital Online Investment Account (Robo Advisor Account)
- Business and Employee (examples: Sole Proprietor, S Corp, C Corp, LLC, LLP)
General overview of the Financial Planning process
Step 1 – An assigned CERTIFIED FINANCIAL PLANNER™ will first establish your and the Planner relationship. An outline of the responsibilities of the CERTIFIED FINANCIAL PLANNER™ and what your responsibilities are as an investor. Your CERTIFIED FINANCIAL PLANNER™ will disclose the length and scope of the relationship (one-time engagement or on-going engagement), as well as the method of compensation. Depending on the complexity of your planning needs, the CERTIFIED FINANCIAL PLANNER™ will determine which planning approach is best for you (single, multi-purpose or comprehensive).
Step 2 – The CERTIFIED FINANCIAL PLANNER™ will gather data from you including broad and specific goals and objectives. You will complete a risk tolerance questionnaire, which will determine how much risk you are willing to sign up for and how well you understand investments. No worries, if you are a beginner investor, you will be educated about the different types of investments and accounts based on your situation. Data gathering may include documents such as paystub, tax returns, wills, trusts, investment statements, will be requested (if this applies to you or business entity) to establish constructive outcomes. Your CERTIFIED FINANCIAL PLANNER™ will ask you questions about what is your comfort level as it relates to money and investing.
Step 3 – Your data gathering will be analyzed within the context of meeting your goals, needs and what is important to you.
Step 4 – Upon completion of analysis, your CERTIFIED FINANCIAL PLANNER™ will develop recommendations and alternatives based on the evaluation of your data gathering.
Step 5 – You and your CERTIFIED FINANCIAL PLANNER™ will determine what the monitoring responsibilities of your accounts will be. For example, how will your account be monitored – daily, monthly or annually?
Investment Planning and Management – Investment Planning and Management consists of nine steps:
1) Developing an understanding of your goals.
2) Identify a target rate of return
3) Agree on time horizon
4) Determine your risk tolerance and capacity for risk
5) Define asset classes
6) Determine an appropriate asset allocation
7) Create your Investment Policy Statement
8) Select the investments
9) Monitor and adjust as needed
Your CERTIFIED FINANCIAL PLANNER™ will describe the relationship between the number of securities in a portfolio, the types of securities in portfolio and the riskiness of your portfolio. Portfolio rebalancing is key and will be discussed. Aspects of investment selection including investment effort, minimum investment size, ethical and moral issues, different tax treatments, and concentrated portfolios. Dollar-cost averaging plan will be explained; how it works and examples in your plan. Your CERTIFIED FINANCIAL PLANNER™ will explain to you in a “common sense” way to look at the portfolio and investment process.
College Savings Plans – College Savings Plans are investment plans for funding (paying) your children’s college education. Crystal Brook Advisors will develop a plan which best suits your family education funding planning needs.
Estate Planning – Estate planning encompasses the accumulation, conservation and distribution of your assets. The overall purpose of the estate planning process is to have a planned and orderly disposition of assets to people or organizations of your choosing. Estate Planning can provide financial security during retirement years and ensure your intended beneficiaries receive what you want. Your advisor will develop a plan that best suits your immediate, as well as anticipated needs and desires, with the objective of preparing you to see an attorney that will places your wishes into the proper legal format.
Trust Planning – There are many different types of trusts; individual, family, corporation, social or charitable, to name a few. Trusts may be designed to accomplish one or many goals in respect to family, property, investment distribution. Your CERTIFIED FINANCIAL PLANNER™ will develop a plan that best suits your immediate as well as anticipated needs and desires. Only an attorney can prepare and execute trusts.
Business Planning – A CERTIFIED FINANCIAL PLANNER™ advises businesses how to start a new business entity by defining business entity, e.g. Sole Proprietor, LLC, LLP, S Corp, C Corp and your Business Succession agreement. The CERTIFIED FINANCIAL PLANNER™ will assist you in in identifying the employee benefits plan that meets your business planning needs. A few employee benefit plan examples include 401(k), 403(b), 457, Executive Compensation, Defined Benefit to name a few. Advisory solutions include: business strategy, asset allocation management, implementation and monitoring your employee benefit plans. The CERTIFIED FINANCIAL PLANNER™ will assist you in identifying the risk management (insurances) plan e.g. Health insurance, Life insurance and Disability insurance that meets your employee benefit plan needs. If you are established corporation, we offer confidential comparative analysis of your existing plans identifying administrative, management fees, asset allocation and managers, customer service and support.
Retirement Planning – Retirement planning is the planning one does to be prepared for life after paid work financially but in all aspects of life. The non-financial aspects include lifestyle choices. How to spend time in retirement, where to live, when to completely quit working? There are many different types of retirement investment accounts which will meet your planning needs. Retirement Plans include: Traditional IRA (Individual Retirement Account), Roth IRA, SEP IRA, SIMPLE IRA, 401(k), Individual 401(k), 403b, 457. Your CERTIFIED FINANCIAL PLANNER™ will help you in identifying the Investment Retirement Plan, which meets your financial planning and investing needs.
Insurance Planning – Insurance provides an individual, family or company with the protection need against the risk, possibility and probability of sustaining a loss, in life, property or value. So what are the risks? There are many types of insurance, which will meet your insurance planning needs. Your CERTIFIED FINANCIAL PLANNER™ will assist you or your company in identifying the type of insurance, which meets your individual or company protection needs as well as your Estate Planning needs.