The 5 Step Process
Jason R. Newcomb, CFP, President, Steven Jones, CFP, Senior Advisor, Karen M. Kaye, RP, Para Planner Clinton, New Jersey tax planning, cash flow management, risk management, estate planning, education funding retirement planning, employee benefits, strategic business planning
Portfolio Management is the design, implementation, and ongoing changes made in your investments to keep them on target with the goals that have been established.Developing a Present Position 2: Establishing the Client's Financial Goals and Objectives 3: Determining the Problems 4: Developing the Plan 5: Implementing and Updating the Plan
The client will be asked to complete a detailed Confidential Financial Questionnaire which will advise Newroads on all their assets, liabilities, income, expenses, as well as all of their financial resources, such as company benefits, wills, insurance, etc. This information will be transposed onto our computer database. We will then know exactly where we are starting from. This is called the Present Position.Most people visualize their financial goals subjectively, as opposed to objectively. They tend to see a picture of where they want to be. For example, retirement may just be an image in the client's mind. They might see themselves playing golf or fishing on a warm sunny day, while the rest of the world is toiling away.Our job, through listening and questioning the client, is to convert these images to numbers. Our goal is to arrive at a reasonable assumption as to what that lifestyle will cost. Once this job is done, we will then have a clear set of measurable objectives in which we can compare with the Present Position.Once we have established the client's Present Position and their Goals and Objectives, we can determine what they are doing right, and more importantly what they need to change. What are the problems that we need to solve?
Simply put, the distance between where they currently are and where they want to be is the problem. In this step of the process, we will determine such things as:
Are they paying too much in taxes? Are they losing money in their cash flow management? Do they have enough liquidity for emergencies?
Do they have appropriate insurance coverage for disability, premature death, and/or long-term health care expenses? Do they have the proper wills, trusts, and other estate planning documents? Are they on track to fund their children's education and their own retirement? Are they making optimal use of their employer-provided benefits?
Do their investments match their purpose and their investment personality?Now that all the information has been gathered, and the problems have been determined, the Newroads team will develop and write a personal financial plan for the client, which will establish the actions needed to be implemented so they can reach their goals and objectives. It is important to understand that our job is not only to determine your problems in a timely and cost-effective basis, but also to show potential strategies based on your available resources.Everything done up to this point in the process is only valuable if the plan of action is implemented. This takes a commitment on the part of the client. However, it is our role at Newroads to work with and assist the client in the actions necessary to make the plan a reality. Whether it is finding the right attorney to review or implement wills and trusts, or establishing cost-effective insurance or investment plans, we will work with the client every step of the way. Because circumstances change over time, so will your financial game plan. Newroads plans on a lifelong relationship with the client. Periodic reviews are recommended, followed by implementation of any warranted changes in your plan.