Comprehensive financial planning is meant to eliminate confusion by
identifying how assets and goals complement each other during the
different stages of life. However, large financial plans may leave a person
overwhelmed, potentially leading to a greater risk that key parts of the
plan will remain unimplemented. Although the accuracy and thoroughness
of a financial plan is important, prioritizing a plan into manageable steps
can be just as valuable. The stages detailed below offer some examples of
how to navigate a comprehensive financial plan from setting a foundation
to transferring assets to the next generation.
Financial Foundation
(approx. age: 20–35)
a. Earnings vs. Expenses
b. Debt Management
c. Employer Benefit Elections
i. Low Deductible Plan vs. Health
Savings Account
ii. Group Life and Disability
d. Initial Retirement Savings
e. Basic Estate Documents
i. Last Will and Testament
ii. Advanced Medical Directive
iii. Beneficiary Designations
Family Planning
(approx. age: 35–50)
a. Survivor Needs
i. Debt Payoff
ii. Income Replacement
b. Education Planning
i. Public vs. Private Elementary
and High School
ii. College Savings
Retirement Ramp Up
(approx. age: 50–60)
a. Increased Retirement Savings
i. Employer Sponsored Plans
ii. Supplement Retirement
Savings
b. Long Term Care Introduction
i. Insurance Solutions
ii. Self–Insure
c. Setting Retirement Spending
Expectations
Retirement Red Zone
(approx. age: 60–75)
a. Transitioning Assets to Income
Streams
b. Social Security Considerations
c. Pension Election Analysis
d. Detailed Estate Planning
i. Health Care Power of Attorney
ii. Financial Power of Attorney
iii. Revocable and Irrevocable
Trusts
Wealth Transfer
(approx. age: 75+)
a. Annual Gifting
b. Charitable Giving
c. Life Settlements
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EVOLUTION OF FINANCIAL PLANNING
Securities offered through Valmark Securities, Inc. Member FINRA/SIPC. 130 Springside Drive, Suite 300, Akron, Ohio 44333. (800)
765-5201. Advisory services offered through Valmark Advisers, Inc.,
Capital Formation Group, Inc. is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
V.01.2020