Converse County Bank

The Planning Process – Where Do I Start?

Common questions include:

What are my goals? Is this money for retirement, child’s education, a second home? How much money can I devote to a regular investing plan? How much will college cost when my child needs to go? How much income do I need for retirement?
Who do I talk to about the lifetime planning process? Do I talk with my Bank, financial planner, or CPA?
What is the lifetime planning process and where do I begin?

Proper planning allows you to:

maintain control of your finances and personal decisions during life and after death
implement your choices in case of incapacity
avoid Probate Court
avoid Estate, Gift and Generation Skipping Taxes
provide for loved ones while protecting your income.

Step One:
Carefully choose your Financial Planning Team
Some of the people you might want on your team include an accountant, trust officer, financial planner, or an insurance agent. The team can help you:

analyze your "cash flow" in the light of a budget.
analyze your current and future net-worth position and any changes.
offer ideas for income tax reduction. Provide investment planning to maximize retirement income.
outline solutions for educational planning where children are concerned.
suggest insurance planning to provide income in the event of premature death.
advise you about disability insurance to provide income in the event of a disability.
help you plan the purchase of a home and real estate such as a cottage.
suggest specialized business planning such as buy-sell agreements and succession planning.
provide creative health planning such as Critical Illness Insurance, Long Term Care Insurance, Power of Attorney, a Living Will, and pre-funding care for parents whose health is failing.
suggest Will and Estate Planning ideas.

Step Two:
Calculate your Current Position

You need to examine:

how much you are earning from all sources
how much you are spending
what you own
and what you owe.

With this information you and your advisors can assess your ability to save for your future.

Step Three:
Determine your Financial Objectives
Once your current situtation is recorded, you are in a position to set your financial objectives. These objective may include children’s education, retirement, a trip overseas or many others. Financial goals are generally either long-term objectives or short-term objectives. Your financial plan and investments will be influenced by the term of your objective. When you understand your current financial position and what you want to achieve, you are in a position to plan.

Step Four:
Recommendations To Meet Your G oals
After you have developed your position, your financial planning team begins to recommend ways to implement your goals. Solutions can include any number of strategies. They might include IRA’s, 529 Education Plans, investment diversification, tax reduction strategies or budget considerations. The recommendations and plans are tailored to the person or family.

Step Five:
Decide Which Recommendations Meet Your Goals and Implement Them
Once you have carefully studied and understood the recommendations, you can decide on which recommendations to accept and take action. The lists of options can seem complex, but a good financial planning team can make your options clear.

Step Six:
Conduct Periodic Reviews of Your Financial Plan