Financial Planning

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Providing You With a Comprehensive View

At Arrowroot Family Office, our experienced professionals can provide you with a comprehensive financial plan that covers an overview of your current financial picture and an evaluation towards your short-term, mid-term, and long-term goals. We understand that each of our clients have their own unique set of goals and needs, and our financial planning process can provide you with a path that is specifically tailored to suit your individuality. Our financial planning services consist of the following:

  • Retirement planning
  • Corporate retirement
  • Estate planning
  • Tax planning
  • 401(k) & 403(b) services
  • IRA services
  • 529 planning

Retirement Planning

Our team is also proud to offer retirement planning solutions for those that are looking to start saving for their post-professional life. Whether you are already approaching retirement or you are getting a head start on your financial future, we are here to help formulate and maintain a retirement plan that works for you and your goals and needs.

Estate Planning

We understand that your family is what is most important to you, and as a reflection of that, we believe that solid, thoughtful estate planning is necessary to ensure that your family is financially protected even after your death. Our firm offers simple and effective estate planning services that are designed to give you the peace of mind in knowing that everything will be taken care of for you.

Financial planning is the process of framing financial policies in regards to investments, procurement, and administration of funds in an organization. Financial planning is also the process by which individuals or businesses estimate the per capita required and determine the level of competition to effectively manage funds. A good financial plan acts as a directive manual to guide entrepreneurs in their business journey. It helps individuals and businesses control expenses, income, investment to effectively manage their funds and achieve their financial goals. The main factor that is essential in a financial plan is money. A financial plan will ensure families and business owners have clear guidelines on spending their money on essential things. A financial plan should be comprehensive and highly individualized to reflect the individual situation, future expectations, and risk tolerance.

The Main Objectives of Financial Planning

Financial planning is done to ensure a firm does not increase its resources unnecessarily. Excess funding is bad for a business as a shortage of funds. When a business has surplus money, financial planning is done to invest in the right way to avoid keeping financial resources idle. Organizations are at the risk of overspending when they have extra funding without a clear financial plan. Another object of financial planning is to determine the capital structure and capital requirements of a business. A financial plan outlines factors such as promotional expenses, cost of fixed and current assets, long-range planning. It also includes the decisions of debt-equity ratio for both long and short-term goals. Financial planning also ensures the company has sufficient funds for different purposes such as day-to-day expenses and the purchase of long-term assets. As a result, the business can manage the available finances according to its needs and goals.

Importance of Financial Planning

Wealth Creation

The current economy is characterized by the rise of item prices in every sector. A financial plan is necessary to keep up with the changes in the economy while maintaining good living standards. Individuals need to create a corpus plan for their wealth to achieve future goals of buying a house or a car. Therefore, better life in the future can only be achieved through financial planning. By learning the right avenues to invest the money, individuals can accumulate enough wealth to maintain high living standards despite the changes in the economy.

Retirement Planning

The current retirement age is 66 years, and individuals can face financial hardships if they lack a financial plan. If an individual retires in the next 20 or 30 years in the future, it does not mean they should start planning after retirement. Financial planning helps individuals save enough money during their working years to avoid financial challenges after retirement. To enjoy a comfortable retired life, individuals should build a safety net through financial planning. A financial plan provides guidelines on savings and expenditure to ensure adequate income is available after retirement.

Creating a Contingency Plan

The future is uncertain, and nobody knows what to expect. While it is good to hope for a better future, families, and businesses should also prepare for the worst. An unexpected medical emergency or a sudden job loss can put an individual in a difficult financial situation. Financial planning creates contingency funds to use when a person gets unexpected financial needs. Financial advisors help investors in keeping sufficient emergency funds to counter the impacts of unexpected situations. Contingency funds can be invested in liquid funds to be easily accessed in case of an emergency.

Fixing Capital Structure

Businesses require an effective combination of equity and debt for better operation and for growth. A good capital structure maximizes the organization’s market share by increasing its earnings. It also increases the ability of the company to create new investment opportunities and find new wealth. Through financial planning, businesses can arrange funds according to short and long term. It is also essential in tapping the most appropriate finance sources at the appropriate time. As a result, the company shareholders and debenture holders can effectively manage their capital to achieve organizational goals.

Reducing Tax Burden

Individuals pay a substantial amount of tax every year, which may be a burden for many. Those high-paying taxes for assets and investment properties generate low revenue from them. Paying low taxes reduces the expenses incurred by an individual or a business when paying bills for different investment properties. Effective financial planning acts as the right way to hold together assets and capital to reduce the tax burden. By planning for individual finances in advance, businesses can identify the appropriate avenues to invest and reduce taxable income.

Advantages of Financial Planning

To Reduce Risk

Financial planning allows businesses and individuals to create an emergency fund. The emergency fund should be equal to at least six months of monthly income to ensure enough money is available in case of an emergency. Investors and families should seek financial planning to reduce the risk of unexpected financial needs.

To Attain Peace of Mind

Effective financial planning allows individuals to have adequate funds to cover personal expenses and investments. With enough money, individuals do not have to worry about financial needs and can enjoy peace of mind. Financial planning helps in managing personal income and investment to avoid the stress of life.

To Secure Retirement Income

Many business owners may believe that sales of their business are enough to fund their retirement. However, this cannot be achieved without a good financial plan. A financial plan helps the business owners develop an investment, saving, and insurance strategy to generate enough funds for retirement.

Types of Financial Planning

Cash Flow Planning

The concept of cash flow planning involves looking at the incomes and assets of a company and balancing them against the possible liabilities. A company or an individual can forecast the short-term or long-term goals against the projected cash flow. Cash flow planning allows business owners to prepare for financial shortcomings and manage the available funds efficiently. Incorrect cash flow planning can lead to bankruptcy.

Insurance Planning

Insurance planning is a very vital type of financial planning. Insurance planning protects the family, business, home, and other individual assets from unexpected events. It helps resolve unforeseen situations such as medical needs, accidents, and job loss. The main idea behind insurance is to contribute financially in order to recover in case of unexpected events in life. Insurance planning ensures that personal finances are significantly impacted in extenuating situations such as disability, death, illness, or accident.

Tax Planning

Tax planning helps individuals and companies maximize their financial savings by reducing the amount of taxes. A tax plan ensures that all elements of the financial plan work together to pay the lowest tax. Through tax planning, individuals ensure they can attain maximum tax efficiency. Reducing tax liability increases the ability to make contributions to retirements plans which are vital for success. Successful businesses stay up-to-date on their tax plans as part of financial planning strategy.

Real Estate Planning

Estate planning eliminates the uncertainties of the future by maximizing the value of an estate and reducing expenses. The main objective of estate planning is to designate heirs for available assets. Estate planning is considered a high return and low-risk financial planning option for families. In case of unexpected situations, estate planning is the right plan for family safety and financial stability in the future.

How Arrowroot Family Office Can Help You with Financial Planning

Arrowroot Family Office contains a team of financial advisors who offer holistic financial planning services to ensure confident and informed financial decisions. Arrowroot Family Office uses a top-down approach that focuses on the client’s values and financial goals. Financial advisors help clients by understanding the financial goals and situation. The financial situation involves the current income, expenses, savings, debts, and investments. In addition, the advisors understand the client’s goals and timeline to create a financial plan based on client needs. This first step in financial planning gives Arrowroot Family Office advisors a good sense of the client’s situation and goals to work towards.

The financial advisors in Arrowroot Family Office look at different financial planning options and implement the right plan. There are numerous investment options that clients may look to put their finances to achieve short-term and long-term goals. The financial advisors view the client’s finances from a holistic point of view and provide insight on how one financial decision can affect the other. They select the right investment option for every client based on investment amount, age, risk appetite, and goals. The financial advisors also help clients make the most appropriate decision to achieve their financial goals. After implementing the right investment plan, Arrowroot Family Office tracks personal progress and makes valuable adjustments according to the changes in the market and demand. The financial planning process does not end once a client invests money. Arrowroot Family Office monitors how the funds are performing in the market regularly and if they are likely to achieve the set goals. If the plan does not achieve the intended goals, the financial advisors at Arrowroot Family Office adjust the financial planning model to suit the client’s needs and goals.

Frequently Asked Questions

Financial planning is the process of framing financial policies in regards to investments, procurement, and administration of funds to meet life goals. It also helps entrepreneurs and investors make advance provisions for the needs that are likely to arise in the future.

Financial planning guides individuals towards the right direction by improving their decision-making skills in financial issues. A financial plan allows you to understand every financial decision you make and how it affects a different area of finances. A financial plan also helps in planning for unforeseen events, thus preventing financial stress and risky emergencies.

A good financial planner places their loyalty on the client and not the profit. Being independent is the right way a good financial planner can offer services without any limitations or restrictions. An independent financial planner also creates a customized plan to provide growth of the client’s wealth.

The rule of thumb does not apply towards saving because it depends on income level and age. Individuals can start by putting in 10 percent of their income every month and slowly increase it according to their goals.

In a financial plan, financial advisors should include a review of the client’s net worth, investment portfolio, cash flow, goals and objectives, retirement planning, insurance needs, and tax planning. With all these analyzed, advisors can implement a financial plan to meet the client’s needs.

A financial plan should be reviewed when there is a lifestyle change such as divorce, marriage, or death. Lifestyle changes affect the expenses of the client. Any change in financial position means that a financial plan should be reviewed to accommodate the change in goals and circumstances.

Clients should include information regarding investments held, saving needs, income and expenditure details, goals, and the number of dependents. The more accurate the information, the better the quality of financial advice and chances of achieving the goals.

According to the Financial Industry Regulatory Authority (FINRA), any person can be a financial planner provided they have the skills and knowledge required in financial planning. However, parties granted the authority to offer financial planning include insurance agents, investment advisors, practicing accountants, and financial advisors.

Factors that affect financial planning include age, individual goals, spending behavior, savings and investments, financial potential, and risk factors.

Helping you achieve your evolving financial objectives