October is our favorite month — Financial Planning Month! We are dedicated to providing comprehensive financial plans to our clients. To provide a better understanding of what we do, we are presenting Financial Planning: A to Z.
Annual Review- at a minimum, we hold review meetings with our clients once a year to keep their financial information up-to-date, review their accounts, and make any adjustments needed. Plus, we love to catch up with clients and have a genuine interest in their livelihood
Budget- a term you are probably familiar with. If you are struggling to create a budget, we can help you create one to balance expenses and be able to plan for the future.
Customized Plan- no family is the same. Each plan we create is customized for our clients’ current financial situation and their goals.
Diversification- this is an essential part of building a portfolio of investments. A portfolio should be diversified to protect it from risk and allow for exposure to a broad base of investments. Based on a client’s risk tolerance, we will make adjustments to their portfolio so it is adequately diversified.*
Experienced- we have experience with a wide-range of items within the financial planning industry such as insurance, college planning, and investment management. We believe our experience with these aspects of financial planning differentiate us compared to other advisors. We have worked with many families and business to help them achieve their goals.
Fiduciary Duty- As CERITIFED FINANCIAL PLANNER Professionals™ it is required to act in the best interest of your client, putting them first when making recommendations for their finances.
Goals- a financial plan revolves around clients’ goals. We work with our clients to help them pursue their short-term and long-term goals.
Holistic- a financial plan is holistic in nature because it incorporates all parts of a family’s current financial situation and plans for the future. This may pertain to their estate plan, a family business, or healthcare concerns of an aging family member.
Individual Retirement Account (IRA)- a common type of retirement account that you may have heard of or currently have. A traditional IRA is tax-advantaged because the contributions grow tax-free and can be eligible for a tax deduction. When the contributions are withdrawn after age 59 ½, people are typically in lower tax brackets.
Joint and survivor annuity- this is a type of annuity that clients can have. This annuity may provide an income stream to both spouses while they are living and will continue payments until the second spouse’s death.**
Key person employee insurance- if you own a company, you are probably a key employee. We can help determine the correct amount of key employee insurance for you or other key employees at your company to provide protection in the event of a premature death.
Locations- we have two locations, Farmington and Glastonbury, CT. Our clients can choose the office most convenient for them.
Monitoring your investments-an essential part of what we do. We watch the markets and our clients’ investments to monitor portfolios. LPL Financial provides us with weekly market performance reports, market insight, suggested trades, and much more.
Negative correlation- when two variables move in opposite directions. For example, a portfolio’s risk should have a decreasing risk while the return is increasing. The negative correlation contributes to the stability of the security or portfolio.
Options- a type of financial instrument that is derived from another asset. Investors can buy or sell an option contract to secure a set price.***
Planning process- the planning process has eight steps to create a personalized financial plan. We follow each step to get to know our clients, evaluate their financial situation, and create recommendations. The process is on-going, each step takes time and over the course of our relationship, we may repeat some steps if it is necessary for the client.
Qualified Retirement Plans- if you currently have a qualified plan, we can discuss your contributions. If you are an employer looking to create a qualified retirement plan, we can help create one that is suitable for you and your business.
Risk tolerance- we provide our clients with a risk tolerance questionnaire to get an idea of how much risk they are willing to take on to pursue their goals.
Support- our offices are staffed to provide immediate help in the event your advisor is not available. We also assist them to ensure timely follow-up and communication with our clients.
Tenpath- the meaning of our name is to reflect ten specialties of our firm: retirement optimization strategies, tax mitigation, wealth management, college funding, healthcare, estate planning, employee benefits, life, long-term care, and disability protection, special needs advocacy, and business succession.
Understanding- one of our goals is to make sure we are easily understood by our clients. We strive to make the complex simple so you can become better educated and receive actionable advice.
Volatility- there can be volatility in the market or in your life. We adapt to volatility in the market by keeping a close eye on performance. If your life is volatile, we maintain an extensive network of professional contacts who can help with everything from taxes to end of life advocacy.
Website- check out our website for our blog posts. We publish posts about financial topics, tips and tricks, and more! Our website also displays our client bill of rights, pictures of our team, and any events we are hosting or attending!
X-ray- we perform a portfolio x-ray to determine the performance of your . With the use of Morningstar, we take a deep look into our clients’ portfolio by breaking down their asset allocation, their stock sectors, and their investment style. The x-ray allows us to gain a deep understanding of the portfolio and determine if any changes need to be made.
Yield- a percentage of return on a stock or bond. The higher it is, the larger the dividend or interest payment the investor will receive.
Zero judgement- some people can be embarrassed about their finances or their lack of knowledge. We never judge our clients- we are here to help you.
Still want to learn more about financial planning and what we do? Contact us today at firstname.lastname@example.org or one of our offices (860) 606-0977- Farmington, (860) 815-9041- Glastonbury.
*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
**Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
***Options are not suitable for all investors and certain option strategies may expose investors to significant potential losses such as losing entire amount paid for the option.
The opinions voiced in the material are for general information only and are not intended to provide specific advice or recommendations for any individual.