A plan is only as good as its ability to be followed.
Your financial plan should go well beyond a summary of your investments, goals, and target dates which sits on a shelf collecting dust once it’s completed. It should be a living, breathing document which grows and adapts to your changing life and changing times. Your plan should:
- Show you your entire balance sheet in one place, so you always know where you stand.
- Be realistic – Include appropriate healthcare costs, taxes, changing expenses, different inflation rates.
- Stress test your portfolio to make sure your investments can withstand many different market environments.
- Show you the impact of various possibilities – A longer lifespan, higher inflation, adopting a different portfolio mix, etc.
- Help you understand how life would look if a family member dies or needs chronic medical care, so you can adequately insure yourself, if needed, without taking undue risk or spending money on unnecessary premiums.
- Help you evaluate the impact of different financial decisions – When to take Social Security benefits, whether to purchase a rental property, etc.
- Be understandable to you and your family.
- Be manageable and executable, so plans become reality.
At Brown Wealth Management, we create the ultimate plan that organizes and aligns every aspect of your financial life in an actionable and useful way. Then we keep it that way. After each plan review, we follow-up with a list of our action items and yours, so planning becomes reality.