Toward financial success and peace of mind
Most people go through life thinking little about their personal finances. They close their eyes, move ahead and hope for the best. Whether they succeed depends largely on luck.
For people who don’t want to pin their hopes for financial success on luck, we have the answer. It’s called comprehensive financial planning. Associates of Mentor Capital Management Inc. have the expertise, the objectivity (because we are purely fee-only) and the resources to help people assure financial success and create peace of mind.
Our work begins with a no-obligation initial consultation, during which we discuss with the potential client their financial concerns, their goals and their objectives. Together we determine whether our services are appropriate and of value. We agree on the terms of the engagement and discuss our fee.
Next we gather data from the client virtually everything related to the client’s finances: income and expense, assets and liabilities, employee benefits, taxes, insurance and estate plan. The timing of the client’s goals as well as his or her risk tolerance are also taken into consideration.
We then perform a complete analysis of the data and prepare a comprehensive written financial plan that includes specific recommendations aimed at improving asset utilization and goal achievement. We work with the client throughout the year to implement the plan and to help manage any financial issue that arises.
Our recommendations typically fall among six areas:
- Cash flow – How to maximize cash flow margin, which is then allo-cated toward savings and investment;
- Cash reserve (emergency fund) – Where to keep it and how much to keep. By its nature a cash reserve will be low-yielding; having too much will impede goal achievement;
- Risk management – Protecting the things we can’t afford to lose, such as our assets or our ability to earn an income. Everyone’s risk profile is different, so every risk management plan is different, as well. Sometimes, but not always, involves paying some-one else to assume the risk (insurance).
- Financial independence – Will the client have enough income and assets at his or her chosen retirement age? What are the chances that she will outlive those assets?
- Tax management – Income taxes are one of the greatest roadblocks to financial success. Managing taxes is one of the most important elements in any financial plan.
- Estate planning – This means putting the appropriate legal devices in place to ensure the efficient, orderly distribution of our estates.
- Investment management – This is a major key to attaining financial success: Allocating investments according to the timing of goals, while maximizing returns and minimizing risk.
