Financial Plan Components
Seaton Financial Advisors, LLC
1. Summary and Action Plan
Summary of the key aspects of the Plan including recommended actions to be taken by the client and advisor; Includes summary of the client’s goals, risk profile, key planning assumptions, etc;
2. Risk Assessment
Explains the concept of investment risk and facilitates discussion leading to the selection of one of four risk profiles to be used in developing the investment strategy: Aggressive,
Moderately Aggressive, Moderately Conservative, or Conservative.
3. Net Worth Statement
Listing of major assets and liabilities, their fair market values and calculation of the client’s net worth (total assets minus total liabilities).
4. Current Portfolio Assessment
Listing of all current investments by account and by asset type;
Assessment of investment performance, costs, asset allocation, risk level, etc.
Recommendations for reconfiguring portfolio to meet financial goals; Recommendations are at the “asset category” level and do not include specific securities (specific securities are selected during the implementation of the Plan).
5. Savings Plan
Forecast of recommended annual savings amounts to achieve financial goals. Annual savings amounts are listed separately for each client and categorized by type (401k, employer match, IRA, ROTH, etc.)
6. Investing Plan
Forecast of future year’s portfolio balances and activities including new investments, investment earnings, withdrawals, ending and average balances. Includes investment strategy, assumptions about future rates-of-return, inflation, etc;
7. Cash Flow Plan
Forecast of future year’s income, taxes, spending and any cash withdrawals required from the investment portfolio.
8. Risk Management and Asset Protection
An assessment of the major risk areas and related insurance protection (premature death, disability, health, long term care, property, personal liability and automobile);
Assessment of property titles and use of legal entities to protect assets from personal liability;
9. Estate Planning Outline
An outline of the key components of an estate plan; Purpose is to facilitate understanding of the major aspects of the estate plan and to assist in making key estate planning decisions.
10. Estate Plan Documentation
Listing of all major assets in the estate including fair market value; Current beneficiaries
(where applicable); Titles for tangible assets; How each asset will pass to beneficiary
(probate, contract, title, etc.); Value of each asset for estate tax calculation; Total value of estate; Action plan for making changes
Note 1: SFA, LLC is not a law firm. The client is urged to obtain competent legal counsel before implementing any strategies that involve legal matters.
Note 2: SFA, LLC is not a CPA firm. The client is urged to obtain competent CPA and/or legal tax counsel before implementing any strategies involving tax matters.