In our experience, having a written, comprehensive, and regularly reviewed financial game plan is the single most important factor in determining whether a family will be able to accomplish its goals and maintain financial independence.
Every aspect of your financial life is important. The balances of your investment accounts. The rate of return those accounts earn. The life insurance coverage you have through your employer. But how are these components related to one another? What do they mean in terms of accomplishing your financial objectives? Is there an overall strategy in place, or are isolated decisions being made?
A comprehensive financial plan encompasses all aspects of your financial life (net worth, cash flow, investments, tax management, protection planning, etc.), and enables you to understand the critical relationships between them. It provides context by clearly outlining where you stand in relation to your goals, and ultimately lays out a holistic and custom-tailed strategy aimed at increasing the likelihood of accomplishing them.
Our financial planning process:
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Clearly define, quantify, and prioritize your short, mid, and long-term financial objectives. Examples might include retiring at a specific age, funding future education costs for your children or grandchildren, creating an adequate income stream during retirement, the purchase of real estate, or some combination.
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Establish your starting point by collecting and thoroughly reviewing your pertinent financial information. Specifically, what you own (real estate, savings and investment accounts, insurance policies, etc.), what you owe (mortgages, car loans, etc.), what you earn, and what your expenses are.
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Perform a detailed analysis to determine whether you are on or off track to reach your goals, and whether you are adequately protected from potential risks that could derail your plan. If necessary, make changes to the assumptions used in our analysis, and illustrate additional scenarios (as a means of stress-testing your results) until we’ve established a plan framework that’s achievable, realistic, and one that you’re happy with.
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Evaluate potential strategies that may be appropriate to consider, provide education on the important details of each (costs, tax considerations, etc.), and ultimately finalize a set of specific recommendations for you to follow.
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Formally review your plan at least annually to measure progress, make updates based on changes in your situation, and adjust our overall strategy as needed.
Itera Wealth Management does not prepare tax returns or estate planning documents, nor does it serve as an accountant or attorney.
Itera Wealth Management does not offer direct investments in commodities or energy, nor does it engage in commodity brokerage or trading services.