• The Purpose of this Blog
• About Beacon Financial Strategies
• Beacon’s Financial Planning Philosophy

Money Magnifi$ense

Helping Make "Sense" of Your Money Decisions

Beacon’s Financial Planning Philosophy

At Beacon Financial Strategies, we believe that financial planning is the foundation for helping our clients achieve their financial goals.  A client’s financial plan is not a means to sell a financial product, but rather a formalized and ongoing framework that is used as a basis when making important financial decisions.   The following are observations and points to consider:

1. Financial planning is not investing. There are many investment advisors who label themselves as financial planners.  While an investment strategy is one component of a financial plan, making investment recommendations is not financial planning.  For example, the most appropriate asset allocation means nothing if a person is wiped out due to inadequate insurance coverage.
2. Effective financial planning requires frequent communication. In addition to an individual’s personal financial situation, tax laws and other financial planning regulations change frequently.  As such, frequent communication is essential to determine if changes to the financial plan are warranted.
3. Effective financial planning requires depth of knowledge. Since most financial decisions tend to be inter-connected, it is important that financial planning firms have depth of knowledge or expertise.  Advisors who are certified financial planners (CFP®) and/or  certified public accountants (CPAs) tend to have the most extensive background and be the most qualified among all financial planning professionals.
4. Financial planning should be a proactive endeavor. The best financial planning firms have a proactive process for handling their client’s financial planning needs.  This process should be embedded into an advisory firm’s corporate culture.  For example, as mortgage rates decline a true financial planning firm should know whether a client should consider refinancing their mortgage and should proactively approach the client to do so.  Also, as estate tax laws change, a capable financial planning firm should proactively contact those client’s who may need to make changes to their estate plan.

By providing a coordinated approach to financial planning, tax and investments, we believe that we have structured our financial planning practice such that we can help our clients achieve their financial goals.  If you would like to request more information, please feel free to complete the following form or contact our office at (919) 321-8625.