See a Sample Financial Plan
Developing a comprehensive financial plan is the first step toward long-term financial stability. But without seeing one, most people don’t know how a financial plan can provide a well-thought-out strategy for the future.
I wrote this piece to provide an inside peek at a sample financial plan. We can take a look at a fictional couple’s (Chris and Jane Doe) current and projected financial situation, including a thorough analysis of their net worth, a comprehensive tax analysis, and a snapshot of their retirement planning strategy.
What’s Inside in a Financial Plan?
First, you might be wondering what parts make up a plan. Financial plans typically address a broad range of topics and goals, including net worth, asset analysis, retirement planning, and tax allocation.
Your plan can span multiple goals you want to progressively pursue, or it can concentrate on just one. Whichever path you choose depends on your specific needs. The purpose of your financial plan is to serve as a customized roadmap that helps you manage all the components of your finances so you can face the years before, during, and beyond retirement with confidence.
At Worth Asset Management, we think having a sound financial plan should give you a clear image of your present financial situation, a comprehensive understanding of where you want to go financially, and an action plan to help you get there. It should address every aspect of your finances, from your worries and anxieties to your ambitions and goals.
Your plan should also cover risk factors, cash flow, retirement, estate planning, taxes, education, insurance, and income strategies to help you understand how everything fits together. Our planning procedure is intended to help you prepare for both anticipated and unanticipated life events.
The end product is a simple yet practical road map to guide you toward financial freedom.
Take a Look at Key Components of a Sample Financial Plan
Using our fictional clients, we’ve developed a sample financial plan that reflects our planning process. The plan analyzes all aspects of Chris and Jane’s financial life.
In the screenshots below, we can focus primarily on their retirement and tax planning strategies.
1. Financial Picture Snapshot
To get started, let’s take a look at a summary of the components we analyzed to develop a comprehensive plan for Chris and Jane. The components include the proposed plan’s probability percentage, net worth, federal tax rate, and current asset and tax allocation summaries.
2. Retirement Analysis
Another part of the financial planning landscape that we analyze for our clients is retirement planning. Below, I include a screenshot of Chris and Jane’s Retirement Analysis section. The image shows the current and proposed financial analysis action items for their retirement planning.
Chris and Jane’s proposed and current action items are identical because they’re toward the beginning of their retirement planning journey. As they get further along in the process, the numbers in those two columns can change.
3. Tax Estimates
Let’s take a look now at another crucial piece of our fictitious couple’s financial plan: taxes. The estimated federal, state, FICA, and local tax rates shown below for Chris and Jane Doe’s retirement years (ages 63-93+) are based on current and future income, deductions and credits, tax rates, investment returns, retirement account withdrawals, and tax laws.
4. Estate Planning
The final piece of Chris and Jane Doe’s financial plan I want to share is a snapshot of their estate planning. Notice in the flowchart below that the entirety of their assets are inside their estate. We structured their assets this way for several reasons, but the primary motive is to allow them to pass on their wealth without paying enormous tax penalties.
Partner With a Professional
Take a look at Chris and Jane Doe’s full financial plan here to see how our proven method can help you confidently pursue your financial goals. Once you’ve had a chance to read it through, give our team a call so we can discuss how we can create a customized financial plan for you in more detail.
Get started today with a 15-minute introductory call. I can be reached at (469) 423-1989 or by email at info@worthassetmgmt.com.
About Joe
Joe Dowdall is a CERTIFIED FINANCIAL PLANNER™ professional at Worth Asset Management, a financial services company in Dallas, TX, that provides a wide range of wealth management services. With over 15 years in the financial services industry, Joe is a fiduciary who creates customized financial plans for people nearing or in retirement—to help them build and safeguard their wealth through all life stages. He desires to offer clients the best financial planning experience while developing a friendship based on mutual respect. Joe’s philosophy as a financial planner is rooted in his experience as a teacher, where he learned the importance of explaining complicated concepts in understandable terms. He’s passionate about working with a select group of clients to help them achieve their financial goals with confidence and clarity.
Joe has an education degree from the State University of New York and an MBA in finance from Saint Joseph’s University. In addition, he has obtained the CERTIFIED FINANCIAL PLANNER™, Retirement Income Certified Professional®, Chartered Retirement Planning Counselor℠, and Certified College Financial Consultant (CCFC) designations. Joe resides in Frisco, TX, with his wife, Leila, and their two daughters. During his free time, he enjoys traveling with family, exercising, and hiking the national parks. To learn more about Joe, connect with him on LinkedIn.