Friday Insights: October is National Financial Planning Month

In this Video: October is National Financial Planning Month, which means it’s the perfect opportunity for you to revisit your financial plans and the goals you’ve set for yourself over the past year. At Blanke Schein Wealth Management, we take a comprehensive approach to our clients’ financial wellness, and our True Retirement 360 ensures we help our clients plan for every aspect of their retirement experience.

Well hello again this robert shine managing director and partner at blankey shine wealth management today is friday the 9th of october 2020 and today is our friday insights edition we’re going to talk about financial planning and the importance of that in fact this is the financial planning month the month of october so let’s get right down to the five tips of

Financial planning so let’s get right into the five aspects of what a successful retirement plan looks like financial plan looks like if you will at blakey shine wealth manager that’s all we do we start with every one of our clients whether you’re new or an existing client we update the plan we go to the plan uh simply because everything changes life changes

The dynamics and the markets and and valuations change all the time and more importantly as that as life comes at you and all these financial decision making factors from taxes to what pocket you take it out of and the timing of which to fund whether it’s a trip around the world or grandkids and and funding their education and some other things you know anything

In between uh you know from home repairs to second home to to to whatever it might be important to you it’s important to go to the plan and then model that factor and so see what the cause and effect is that’s the key to us and our clients here at blankie shine wealth management we literally start with the planning process and the key five points are ultimately

Take number one is take time to plan ultimately majority of americans don’t even have a financial plan or a framework if you will that’s what we do for our clients here at blankeeshine wealth management we create that framework we create that customized financial plan it’s a blueprint we call it a dashboard of control financially you’re in control you see what

You have you know what it’s supposed to do for you and more importantly know it uh how it all works right financially speaking whether it be real estate or homes or any other business valuations we put it in one succinct plan for you and it’s not a document that’s the size of the the holy bible or even the tax code because no one really has the time ultimately

To you know weed through the tax code if you will because it’s so thick we create a three document solution so it’s the net worth statement that’s what i have behind me your annual income statement as well as retirement income intelligence we call it tr 360 true retirement 360 here at blankeeshine wealth management that’s a proprietary process that we have

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For our clients and i’ll get to that in just a minute but the first step is take time to set aside and work with a professional or again on your kitchen table just create the plan itself and we can help you do that the second is you know once you have that framework if you will on an annual budget if you will everyone talks about it corporations do now it’s

Not perfect life changes and you often you know spend more than you actually should i know we do at the shine household right we have four growing kids and that’s called life it just happens that way but at least we have a framework we kind of know where we’re standing at any given moment and that plan actually helps us so that’s the key point number two the

Third point is is that if you can when you can pay yourself first so if you’re younger obviously have it come out of your paycheck and have it automatic automatic savings is key as you get older you still want to sort of pay yourself first or ultimately know what pocket to take it out of that’s in the most tax advantageous way to fund your existing retirement

Whatever that may be and obviously number four is debt you always want to focus on debt there’s good kinds of debt there’s debt that’s crippling so you want to take a look at the debt that you have and we are we here at blankenship wealth management we analyze that we analyze the risk right now if you look at sort of mortgages right everyone’s refinancing take

Some time to refinance because the rates are you know historic all-time lows reduce that debt reduce that cash flow in terms of burden or the the the the restraints in your current cash flow and then finally the fifth fifth point i would like to bring up is consult with your team so at blankish and wealth management we don’t just work sort of in a bubble with

Just our clients we engage with their tax professional as well as their estate planning attorney to create a holistic view of your financial and wealth plan that is the key so the five key points right there you know take some time to create a plan you know stick to that plan and ultimately have a budget you know pay yourself first or at least know what pocket

You’re going to take it out of when you’re funding your retirement the cash flow both on a short term and long term you know go after the debt crush the debt refinance it right now and then work with the financial professionals now let’s go into a little bit further process that we go through here at blakey shine wealth management ultimately like i said before

We put you on a three document solution the current net worth statement that’s your assets and your liabilities and then ultimately it shows us what you have and sort of how it’s how it’s positioned your income annual income statement so right now in 2020 we have sort of incomes changing uh some are going up some are going down depending upon your let’s say

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If you’re employed right now or if you’re working or we work with a lot of small business owners so ultimately they’re working their own personal business balance sheets right now to retain their employees if you will and so so that does then work into the personal balance sheet we update their financial plan as well as retirees you know our retirees have had

A great year believe it or not and so that means there’s going to be a rise in income so we can then work that back into the plan as well as we start forecasting and updating our clients plan for 2020 and ultimately or 2021 and ultimately the most important thing is is that you want to have a financial plan because we call it the investment policy statement

Here at blankeyshine wealth management it literally determines the amount of risk you should or should not be taking often times most retirees and americans have taken on way too much risk in their investment portfolios they just don’t even know it and you have to start with the plan to actually say hey wait a minute you don’t need that much risk you can take

Some money off the table and sort of put it in different asset classes to diversify and balance yourself and create some more income therefore you’re you don’t have to worry about the market volatility and trust me as we’ve seen through 2020 there’s plenty of market volatility so here’s the last key here in terms of the magic that we here have as a proprietary

Process here at blankieshine wealth management this is called retirement income intelligence that’s true uh retirement 360 here at blankie channel wealth management i showed you the net worth statement the annual income statement that we create for every client we can update it automatically on demand or on your annual review that we often do but this right

Here is basically a projection a linear projection again it’s for for informational and projection purposes only but at the same time it also guides us right so this is a current calendar year of jack and cindy banks this is on top we have their sources of income we have jack and cindy’s age they start here we have jacket 66 and we have cindy at 61 in this

Case and ultimately we project forward their resources of income and sources of income we have uh jack social security when he should take it and then when cindy should take her social security as well as when you take distributions from your retirement account required minimum distributions we can forecast all of that and then we show the cash flow uh whether

You’re positive or or or negative in terms of your monthly needs and then we can make the adjustments here and down here we have your investment accounts we list all the investment accounts you know obviously your retirement account the the assets that we manage here are blanking on wealth management but we go beyond that we also talk about your holistic view on

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Your financial side meaning any retirement income that you might be receiving from real estate or business income or if you’re sort of retired you’re still receiving sort of a buyout from an existing um you know buy sell agreement as you sold your business we show all of that in one key key you know consolidated sort of spreadsheet and it really then projects

Why this is so important is because we can project sort of the what-if scenarios of life meaning you could say to us we’ve had clients come to us and say listen i want to go trip around the world i want to take the entire family we’re going to do you know xyz it’s gonna cost 25 30 000. let’s put it into the plan and we do just that and why that’s important well

Several reasons one what pocket you take it out of and the timing of which really matters as it relates to the longevity long into the future so if you take it out of one account oftentimes clients should say why don’t i take it out of my retirement account well that particular calendar year might have some advantageous treatment for taking money out of your

Retirement account for taxes or maybe not might be the opposite so we kind of look at maybe the trust account or maybe another resource where we would take it out of and the reason why why because of a tax purpose there could be tax implications uh also fees if there’s fees associated sort of with taking out of this one versus this one we look at all aspects

Therefore you know when you do take and plan for let’s say that trip around the world or that second home or even a car just you know you want to want to refresh the the car in the in the garage right now and there’s a great time to do it and whether you should buy or finance or lease who knows talk to us we help our clients with anything related to the wallet

We’re here to answer those questions and better yet we put it in the plan so that you can go live your life with financial confidence so that’s a recap of what we do here at blankieshine wealth management for our clients the importance and the five keys if you will as to why we believe financial planning is important ultimately we encourage everyone again

Especially our clients we can update your plan and then do a forecasting right now as we’re doing for 2021 but we can also take a look at how we’re doing for 2020. so thanks for watching happy friday in our friday insights edition and have a great weekend take care

Transcribed from video
Friday Insights: October is National Financial Planning Month By Blanke Schein Wealth Management