Our Financial Planning Process – Planning

Transcript

Mike:

Here’s how this all works. So after that second meeting, right, everything’s free up to that point. But what we’re identifying is do you need our help? Right? That’s what we’re doing. Yep. We’ve identified, let’s imagine we’ve gone through the process and we say, oh look, here’s what you’ve done. Well, here’s some areas that you need some help with. Now you have to determine you can do it yourself. You’re going to use your current advisor or do you want to use us? Now If you use us, typically there is some kind of a fee, right? It might be a fee for a plan. It might be a fee for money management or something like that. But we always share with you, look, if you work with us, basically, this what it’s going to cost. So let’s imagine you say yes, your fee is reasonable. Yes.

Mike:

We want to work with you. Okay. Our next step then is putting all the planning together. It’s saying, okay, we know where you are. We know where you’re going. Now it’s time to take a fork in the road, right? It’s time to say, what are the forks we could take? Like, what are the different directions we could go to either, A, get your investments up to speed the way you want them. B, make sure that your money lasts as long as you do. C, you know, save a boatload of money from the IRS. I always like to save a boatload if possible.

Zach:

Boatloads are great.

Mike:

Boatloads, saving boatloads of money from the IRS is always good. Let’s make sure your investments are up to snuff. Income’s going to last, make sure your taxes are in great shape both today and tomorrow. Let’s make sure that if you, if you become sick, if you need to use the healthcare system in, in significant ways that you can pay for it and let’s make sure that you’re leaving your family in great shape after you’re gone.

Mike:

So we have to build a plan that allows you to successfully navigate all of those different angles. Here’s the question though. You have to do it all in one fell swoop.

Zach:

You don’t.

Mike:

No, in fact, we like to kind of chunk it down. I learned that 90% of people, they just want an executive summary. Right? I mean, they just want it, like, if you want it, they want to know, Hey, can you, can we dive into the details in that specific area? They want to know that we could do it. But for the most part, they’re just saying, can you just please paint me the big picture? And then so what we do now is I put together an executive summary where it’s maybe just a couple pages. And I say, okay, in each area, here’s what we need to do. Right. This is what we need to do.

Mike:

And then we start prioritizing them. So I’ll give you an example. Just recently brought on a new client. And we went through this list. You know, there’s something, he had to do something in each of those areas. Like there was some things that we want to do for his income, some things for his investments and taxes and health, like everything, but you have to start somewhere. And normally we start with what is most urgent for most people. The portion that is most urgent is getting their investments in order. Then making sure their income set up, especially if they’re going to retire soon. And then once we get those two knocked out then throughout the rest of the year and usually in the first 12 months. So it’s like a 12 month onboarding. So we don’t try to do it all at once. Then what we do is we say let’s set up a separate meeting to tackle the tax issues.

Mike:

Let’s set up a separate meeting to tackle the healthcare planning. Let’s set up another separate meeting to tackle the estate planning. So normally we handle the income and the investments first. And then the other three are just done in the order of whichever is highest priority between taxes, health, care, estate planning. There’s one that normally is highest priority.

Zach:

I think taxes is going to stand out.

Mike:

Taxes, it is you’re right. Normally that’s where we go next, because that’s what people care about. Usually once that’s accomplished, then we dive into the estate planning and the healthcare, but we got to hit them all. If you not, if you’re not hitting them all, you’re not getting a complete retirement plan. The key is let’s identify where you need help. Then we identify what it costs, right, for us to do it. And you say, yes, we say, okay, let’s start knocking those out.

Mike:

One-On-One here’s an executive summary that lays out everything. And then we simply start breaking it down and saying, okay, here’s where we need to start. And then what we start doing to start putting the specifics to planning together, right? So what we’re doing is we’re saying, okay, we want to start with investing in income. Let’s start with that. Let’s put together specific planning. We might have a first draft plan that we put together and you look at it and you’re saying, oh my gosh, that’s the most wonderful thing since sliced bread, right? Let’s just make it happen. That honestly it happens about 75, 80% of the time. The point is you got to start somewhere. How do you eat an elephant?

Zach:

One step at a time?

Mike:

One bite at a time. So how do you make sure you have a complete financial plan, your complete retirement plan? How do you make sure you’ve got all the bases covered? Hey, one base at a time, one step at a time here is the worst thing you can do as a client. It’s procrastination. If you’re the kind of person that has to, you know, if I, if I’m your advisor, if you pay me to be your advisor, I give you my recommendations. And then you have to sit there and go to Google and research every recommendation to double-check my work. And to make sure that you’re comfortable with it, guess what we aren’t working together because I don’t have time for that. And you’re telling me you don’t trust me. Right? Right. Look, if you’re going to hire a financial advisor, trust him to do what there, let them do their job.

Mike:

Don’t be second guessing all the time. You’re going to create a headache for you, and for them, you want to have a retirement plan, a complete financial plan. One in which all your bases are covered. Like you’ve got your investment plan and your income and the income for you might be to make work optional someday. You’ve got your tax planning put together huge, huge part of things, your health care planning, your estate planning. You got to have that all working as a cohesive whole. If it’s important to you that you have that kind of a plan for your future. Well, then give us a call, right? We’d love to talk to you. Absolutely love it. We’re really, really good at this. And we really, really care a lot about it. We want to make sure that the clients we serve are in fantastic shape. Number 512 886 5850.

Mike:

Just give us a call 512 886 5850. Call that number. You’ll talk to my man, Zach here. 15 minute call free. He’ll learn a little bit about your situation to help you get that complete plan put together for yourself.

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