Financial Planning, simplified.
© 2019 Haddam Road Advisors. All rights reserved.
Comprehensive financial planning happens at the intersection of your net cash flow, your net worth, and both current and future tax obligations.
Much in the same way a pension fund manager is mandated with funding future pension obligations, we will look to address the main question of “how do we fund your lifestyle, now and into the future?”. If we’ve answered that question confidently (and with sufficient surplus) then, congratulations! You now have a legacy and what will that legacy look like?
There are countless financial products that claim to be the ‘solution’ for countless problems, but many miss the point; it’s all about your specific combination of issues and challenges that must be addressed first and foremost.
Step One: Questions and data.
Where do we start? We start by asking:
What’s going on with your career? Is it growing or changing?
What’s happening with your lifestyle? Is there a positive change like marriage, children, or adverse changes like health challenges or divorce?
What, in your mind, does the future look like? Are we looking at material tangible goals or something qualitative? Are we focussing on your well-being, those of your family, or possibly those of the broader community (your legacy)? What does this picture look like?
Step Two: How do these goals orient with the “rest of the world”?
What needs to happen regarding your finances (net cash flow and net worth) to make this happen?
What are the potential economic and market headwinds and tailwinds involved in achieving the picture created above?
Step Three: Making decisions.
How much do we save and spend?
Where and how do we invest and at what level of risk?
On what, when, where, and how will we be paying tax?
Step Four: Implement
Make any lifestyle changes (downsize, apply to college, pay off debt, refinance, plan the wedding).
Make any needed portfolio changes.
Step Five: Repeat.
What’s changed? What’s worked and what hasn’t?
Where’s our Net Cash Flow and our Net Worth? Is it where we expected?
Are there adjustments to be made?
Let's start the conversation.
