At Shunk Financial Group, we work with clients to develop a plan that is specific to each client’s individual financial picture. The following principles represent our core beliefs about what constitutes a strong financial plan. While not every one of these action items will apply to every client’s roadmap, the following are elements we consider when developing a plan.
- Visualize your destination. Dream. Imagine an amazing future for yourself and your family. Discover what your financial goals really are. “Be able to smell the grass.”
- Make a map to get there. Create a dynamic financial plan to enact your vision.
- Protect your income. Consider appropriate life and disability insurance.
- Protect your assets. Check to make sure you have health, home, auto, and umbrella insurance.
- Save for emergencies. Plan to reduce or eliminate all credit card debt and maintain 3-6 months of living expenses in an emergency fund.
- Specify your wishes in the event of your death. Establish wills, power of attorney, trusts, etc.*
- Help protect your children’s future insurability. Purchase life insurance on each child or grandchild.
- Get in the habit of saving. Live on what’s left.
- Capture all "free" money. Take advantage of employer matching, incentive plans, etc.
- Guiltless debt reduction. Commit to a debt reduction strategy that balances paying off debt and saving for your future.
- Put your money to work. Harness the power of compound interest to help achieve your goals.
- Fill the right buckets. Take advantage of tax-efficient strategies.*
- Construct a diversified portfolio. Avoid market timing by investing systematically. Pursue a rate of return that is appropriate for your risk tolerance.
- Retire to something, not from something.
Have an efficient distribution strategy.
- Tax-bracket sensitive. Create a distribution strategy customized for your individual tax situation.*
- Multi-dimensional. Account for different income streams such as investments, Social Security, Medicare, RMDs, pensions, cash value insurance, cash reserve, etc.
- Hedged for longevity. Consider long-term care planning options and annuities to defray the risks associated with living a long life.
Never underestimate the impact you have on others. Don’t wait to be intentional about the distribution of your wealth.
- Plan. Leverage the expertise of a team of professionals you trust.
- Implement. Details matter. Coordinate beneficiary and transfer on death designations, trusts, and charitable giving.
- Communicate. Make sure the planning you’ve done is accessible to the right people.
- Review. Revisit your plan regularly.