Spend Less Time Worrying and More Time Enjoying Life
Our holistic, comprehensive planning approach takes into account all aspects of your financial life. Investing gets a lot of attention in our industry, but strategic multi-decade planning can make the difference between a plan that's "good enough" and one that is fully optimized and resilient. We'll help you understand which levers to pull and when to make the most of your opportunity.
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Financial goals and objectives
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Cash flow and income tax analysis
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Insurance assessment
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Education funding analysis
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Financial independence planning
Financial Independence Analysis
The Financial Independence Analysis (FIA) is the backbone of our financial planning process. The FIA is powered by three things:
- Your financial data (income, savings, assets, spending habits, etc.)
- Your financial goals (ideal retirement date and asset level, large expenditures, etc.)
- A probability model known as the Monte Carlo simulation
The simulation takes the information given and runs it against 1,000 possible market outcomes to give you a likelihood you are financially independent enough to achieve your goals.
Results & Action
Using those outcomes, the analysis will outline your overall likelihood of achieving your goals. If the number isn’t where you want it to be, we can work together to make necessary adjustments.
The FIA lays the groundwork for our financial planning process. Throughout our relationship together, we’ll consult and update the FIA each time big financial decisions need to be made. Can you retire early? Or make a big unplanned purchase? Are you ready for a lower risk tolerance in your investment portfolio?
These are all scenarios where we’ll return to the FIA, change the inputs to account for desired money moves, and see how your likelihood of success changes.
Goals-Based Planning
We caution against those who see investing and financial planning as a game where you only want to see the numbers go up. At Plancorp, our approach is goals-based.
First, we'll help you uncover what matters to you and what you'd like to do with your wealth. Then, we'll create a plan and invest your assets in a way to make sure you get there with as little risk as possible.
This doesn't mean you're passive about your plan, though. We work with you to craft an advantage that goes deeper than your next quarterly statement. We're focused on the long-term strategies that get you where you want to be. Curious what this would look like? Download our free guide to financial goal planning.
What Our Plans Include
A good financial plan is far from a static document. It's a living entity you'll want to keep updated as your life and goals evolve.
Generally speaking, the following will be included:
- Monthly cash flow (income, expenses, benefits etc.)
- Plan(s) to pay off debt
- Plan to build an emergency fund
- List of insurance coverage
- Savings breakdown (simple savings accounts, 401(k), IRA etc.)
- Investment portfolio
- Plan to pay taxes
- Retirement savings
- Estate planning
Finding a Fiduciary
One of the most important questions to ask your financial planner or wealth manager is how they get paid. If they get a commission based off their recommendations, they aren't living up to the highest fiduciary standards which could leave you with a plan that is "suitable" but maybe not optimal.
At Plancorp, we are certified in our fiduciary duty by an organization called CEFEX (Center for Fiduciary Excellence). Through a rigorous annual audit, they help validate from an outside party that we are always doing what's best for our clients, not just what helps our bottom line.
Planning for Wealth Alignment
At Plancorp, we go below the "water line" of basic financial advice. We know the biggest questions aren't just about investment allocations or tax strategies, but the life, goals, and legacy those decisions are empowering.
We aim to craft an advantage for our clients so they can confidently pursue their passions without financial constraint. We call this state absolute wealth alignment: when your financial life is in full alignment with your goals and values.
Learn more about our unique approach here.
Financial Planning
Smarter Spending Decisions with Complex Wealth
A client with substantial assets—but a smaller portion of which was liquid—and an 8-figure future inheritance wanted to understand how much he could spend each year without jeopardizing his long-term goals.
Without clear analysis, he risked overspending based on his anticipated wealth, potentially straining his limited liquid assets and jeopardizing near-term goals before his inheritance arrives.
Using our Financial Independence Analysis (FIA), we worked backwards to determine the maximum he could sustainably spend each year while maintaining a high probability of success.
The FIA brought clarity to his options and limitations, guiding him to prioritize goals realistically. It also showed that selling one of his rental properties was necessary to achieve a key priority.
By grounding decisions in data, the FIA empowered him to make smart, confident choices about his wealth today and for the future.
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