At Bay Colony, we strive to curate a custom plan designed for your given situation. This involves reviewing the basic components of a financial plan that takes a balance of your financial and personal goals and your tolerances for risk. Your estate decisions matter, whether that means keeping your beneficiaries updated, making extended care decisions, or preparing a legacy to leave your loved ones. Many people focus on the structure of their portfolios, but don't spend the time to see how those portfolio's are only a small portion of their overall financial plan.
Overall, we feel there are four key components to a comprehensive financial plan:
Defining your goals and objectives
The first step is to plan what it is you want to acheive financially. What is your risk tolerance and risk capacity? How do you define success? Do you have emotional and financial peace of mind?
Portfolio Design and Investment Policy Development
Ensuring your portfolio is aligned with your goals is paramount to having a well executed plan. Are you taking on too much unnecessary risk? Is your portfolio tax efficient? Are you overpaying in fees?
Retirement and Income Planning
At some point, everyone's goal is financial independence. The point where work becomes optional. Before we acheive that stage, we need to analyze what financial independence looks like. What are the cash flow needs? What will tax rates look like in retirement? How will health care be covered? What are our legacy/bequest goals?
Legacy and Estate Planning
The final important step to planning is to make sure your estate goes where you want it to go. We must analyze things like what types of property we own. What are the potential estate taxes that will be due? How much of our estate will be subject to probate? Do we have the right trusts in place? These are all essential questions to analyze.