See a Sample Financial Plan

Have you ever heard the saying “Try before you buy”? It’s common to try or inspect most products before you purchase them: cars, houses, clothes—even mattresses have a 30-day trial period. Yet one of the most important investments of your life (a comprehensive financial plan) is often purchased sight unseen. 

At WealthBuilders, we believe that clients are entitled to know what the end product is supposed to look like before they sign on the dotted line. That’s why we’ve put together this sample financial plan. It’s a detailed example of what clients can expect from our financial planning service and the benefits a completed plan could bring to your life.

If you choose to work with us, here is a sample of what you can expect. 

What Does a Financial Plan Include?

First, you may be wondering about what goes into a comprehensive plan. Financial plans often address a myriad of concerns and goals, from tax planning to retirement income strategizing. Depending on your needs, your plan may narrow in on one element or address multiple goals you’d like to pursue over time. Whatever you choose to focus on, your financial plan is designed to serve as your road map, helping you pull all the moving parts of your finances together so you can navigate the years before, during, and after your transition to retirement.

We believe a good financial plan should give you a detailed, complete view of your current financial situation, a thorough modeling of where you want to be, and the actions you need to take to reach those goals. It should address all the pieces of your financial puzzle, from stresses and fears to your values and dreams, and include risk factors, cash flow, retirement, estate planning, taxes, education, and income strategies to help bring you clarity and guidance. It is through our planning process that we help you prepare for life’s expected and unexpected circumstances.

The result is a simple yet powerful road map to guide you toward financial freedom. 

See a Sample Financial Plan

We’ve developed a sample financial plan that reflects our planning process. It looks at the retirement plan of a fictional couple (Greg and Debbie) and how we developed it, including creating a balance sheet, reviewing their cash flow, analyzing their investments, and more. This fictional couple is in their mid-50s looking to retire in their early 60s. Naturally, because of their timeline until retirement, we focused extensively on their investments and asset allocation after first analyzing their overall financial situation.

Balance Sheet

First, we created a balance sheet to better understand the client’s current net worth. We looked at all assets and liabilities to get a sense for where we could hone in during our planning process.

As you can see in the chart below, Greg and Debbie had significant retirement assets with over a million saved in various retirement accounts and $67,000 in cash. Their only liability was the remaining mortgage balance on their house. Overall, they were in pretty good shape based on the balance sheet with a net worth of $3.2 million. 

The balance sheet doesn’t tell you everything about a person’s financial health, though, so we moved to the cash-flow analysis.

Cash Flow

Next, we developed a cash-flow statement to better understand Greg and Debbie’s income and expenses both now and projected into retirement. We found that since they wanted to retire in their early 60s, there would be a gap in income between when they would retire (age 62) and when they would start claiming Social Security benefits (age 67). 

Because of their significant retirement assets, it made sense for them to take the gap in income so they could delay their Social Security benefits and receive the standard monthly amount at full retirement age, versus taking the reduced benefit at age 62. Based on our analysis, Greg and Debbie could maintain their cash flow with their current level of spending through age 95.

Asset Allocation & Risk Tolerance

During the asset allocation phase of our planning, we first reviewed the different sources of assets and retirement income that made up Greg and Debbie’s entire portfolio. We found that they had a healthy mix of investments, insurance, annuities, retirement, and cash assets. They were properly diversified in the different resources they could draw from during retirement. 

Next, we reviewed the couple’s risk tolerance against the level of risk in their current portfolio. We found that they were slightly overallocated in riskier assets and should be rebalanced to reflect a more conservative approach. Since they were nearing retirement, it made sense to reduce their stock holdings and reinvest some of it in bonds, while keeping a slightly higher allocation toward cash.

Retirement Planning

After analyzing the basics of Greg and Debbie’s finances, we put it all together for an in-depth retirement review. We found that their assets would be more than enough to cover the costs of retirement and would leave them with an approximate surplus of $10 million in assets.

No plan is complete without running a Monte Carlo summary. This analysis uses a computer program to analyze 1,000 different retirement scenarios based on the client’s information to come up with a probability of success. Success is defined as not running out of money in retirement, or in Greg and Debbie’s case, being able to leave $2.1 million behind as a legacy for their family. The Monte Carlo analysis showed that this couple has a 100% chance of achieving their goals.

Keep in mind that this is only a hypothetical plan presented to illustrate what a client’s plan may resemble should they work with us. The characters and circumstances are completely fictional and are for illustrative purposes only. Be sure to seek the advice of a qualified professional for your particular situation and not rely upon any of the information herein to make personal financial decisions. 

Ready to Get Started on Your Financial Plan?

If you’re ready to discover what comprehensive financial planning can do for your financial future, please reach out to us. At WealthBuilders, we have the tools and expertise to help you navigate your financial journey with confidence, no matter what you’re looking to achieve.  

To learn more about us and how we can help you, please call 715-386-3735 or email info@wealthbuilders.financial.

About Dan

Dan Olsen is the president, founder, and wealth advisor at WealthBuilders, an independent financial services firm based in Hudson, WI. Before becoming a financial advisor, Dan had a nearly 25-year career as an on-air radio personality and spent several years in corporate America.

Dan helps clients build and manage their wealth to create a specific plan for retirement and loves teaching them that being wealthy is about more than just money. Through his distinct collaborative approach, he provides the financial guidance and resources necessary to help clients move forward in life and put their values into action. He loves knowing he has a purpose and that his work and effect on people and their lives matters. Through his education and 20-plus years of experience in the financial world, he has gained extensive knowledge and expertise in the financial industry, including obtaining the Series 7, Series 66 held with LPL Financial, and Life/Health & Accident insurance licenses. 

Outside the office, Dan enjoys visiting the Great Lakes with his wife, spending time with his grandchildren, fishing (and ice fishing), listening to ’70s and ’80s music, and supporting charities that address food insecurity, especially with children. To learn more about Dan, connect with him on LinkedIn.