Financial Planning
Step 1: Establish Your Target
At Cornerstone (CIS) we start a financial plan at the end, not the beginning. We want to know where you want to be, what your goals are, and what your expectations are. In this way, we have a target, a tangible objective. Financial Planning may begin now but it extends to the rest of your life. To establish your target we sit down with you and ask some questions: How much insurance will you need? How much retirement income will you need? What special expenses are you saving for? College? Vacation home?
Step 2: Your Starting Point
Once your objectives are established, we take your current assets and project them forward at various rates of return. This creates a baseline for you on which we can build. We then add in any additions to your investment portfolio that you anticipate making over the years, through 401k contributions, IRAas and savings. Based on your actual investments and anticipated additions, we determine what rate of return you would require to attain your objectives.
Step 3: Your Investment Options
At this point we would have a firm understanding of your finances and future goals to be able to offer you investment options. Unfortunately, this is where many people begin their financial planning. For us, it is the final step in starting your financial plan. You don’t know which road to take if you don’t know where you are going.
Step 4: Your Financial Plan In Action
The more important part of your plan of course is the continued oversight, monitoring and adjustment of your plan. As your circumstances change, be it personal, job related or market conditions, your plan should change as well. There is no perfect financial plan and no perfect investment. Both have to be adjusted along the way. This is why it is so important to have professionals with a long term vision working for you. At CIS, we will work with you to create your long term financial vision, show you the steps needed to achieve your objectives and help you along the way. Call today to speak with your personal Financial Advisor and put our exclusive process to work for you.