Oakland, CA | Bay Area, Financial Planning Confirms Financial Foundation

A Probability of Success:

Most clients we meet with need financial help, such as suggestions on how to start saving, funding college for their kids and what to do with their retirement plan at work. Janet, however, had a solid financial foundation and knew a lot about her own situation; she had saved for retirement and understood her 401(k) plan at work, she budgeted for her expenses and she had been consistently building her net worth.  She came to First and Main Financial looking for verification that she was on the right path to meeting her financial needs throughout her life.  She also asked us to identify 1) the earliest age she could retire, 2) how to best fund her retirement accounts to minimize her taxes, and 3) what she could do to help care for her mother who would potentially live with Janet.

We worked with Janet to gather her financial documents such as bank statements, trust documents and budget information, which she uploaded to our secure financial planning software, eMoney Advisor.  Janet was able to simply connect her bank and brokerage accounts to eMoney where we could review her finances.   We produced a base case scenario for Janet showing her financial situation at present.  We then created multiple “What If” scenarios, such as retiring earlier, funding a 529 account for her 11-year old son, and using different retirement accounts to minimize taxes.

Within each of these scenarios, we could project a “probability of success” of reaching age 95 with enough assets to live on.  While her probability of success was 100% in each scenario, we were still able to show her the positive or negative impact of these various scenarios on her total portfolio assets and net worth.  For example, by assessing her potential tax rates in future years, we showed her the positive impact of converting her existing rollover IRA account to a Roth IRA, generating an additional $850,000 in net worth and portfolio assets.

In addition to reviewing her finances, we reviewed her insurance (Life, Disability, Auto, Renters/Home, Medical, etc.) to assess if she maintained enough coverage.  We recommended that she get a quote for an Umbrella Policy to give her greater liability coverage above her auto and home insurance policies, especially since her net worth was significant.

After we presented the financial plan, Janet asked First and Main Financial to manage her assets. We offer a tiered fee schedule for our clients which Janet appreciated; like most of our clients, she considered this a good deal compared to the industry averages and starting rates usually charged by other firms.  We also provide clients like Janet with quality and individual attention as well as complementary guidance on existing 401(K) money.

If you are looking for some financial guidance, whether it be for a one time financial plan or continuing advice on your investments, we invite you to meet with the First and Main Financial advisors for a free consultation.  We work with a variety of clients, some like Janet who know a lot about their financial situation and with others who may not fully understand what they own or need to do.  We would be more than happy to sit down with you, assess your current financial situation, and review with you our services to help you navigate your own financial future.