Dissect and Perfect
Step 1: Inspect
Your planning journey begins today. But the first part of planning any journey is to know where you’re starting. Your initial step is to gather information about where you are financially. Documents and statements that you’ll need to collect include:
- Recent IRA, 401(k) and 403(b) statements
- Savings, mutual fund, and brokerage statements
- Annuity policies and statements
- W-2 and recent pay stubs (if working)
- A current Social Security statement
- Your most recent tax return
- Mortgage and loan information
Once your planner has received, inspected and reviewed the documents, it will be time for your first official planning meeting!
Step 2: Project
Now that your planner has all your information in the planning software, each entry will be reviewed with you for completeness and accuracy. Once the information is completed and agreed upon, it’s time to talk about what all these numbers mean to you in terms of goals and visions. Everyone will have some basic living expense needs but what about health care, travel, recreation, transportation and other retirement dreams? Your planner will coach you through the thought process of projecting forward and trying to imagine how you wish to spend your time and how your finances can best work for you to get you there. Once everyone has a reasonable idea of the timeframes and monetary value around your goals, the planner goes back to the software to translate your conversation into actionable items.
Step 3: Dissect and Perfect
Now the planner’s work really starts. Finding the best path from where you are to where you want to be can take many different courses. Fortunately, the planners at Springboard have worked with hundreds of clients and know many of the pitfalls and potential ways to avoid them. Your plan will be run against many different stress tests and historical scenarios. The planner will run many scenarios looking for the best ways to reduce portfolio risk, minimize the risk of adverse markets, and increase your chances of successes. Each scenario will be dissected for flaws and tested again. The findings will then be presented to you in another face-to- face session with the opportunity for you to ask questions and learn more about the relative strengths and weaknesses of your personal financial plan.