Signature Planning Score
The eight pieces to your financial puzzle
- Have you clearly defined what your ideal retirement looks like?
- Do you understand your retirement planning assumptions and are they conservative?
- Does your Divergent Wealth Signature Plan have a probability score greater than 80%?
- Is your social security strategy optimized?
- Do you know your savings/spending goals pre/post retirement? Are they adequate?
- Are you maximizing all of your tax advantaged savings strategies?
- Have you analyzed the pros and cons between guaranteed income and a lump-sum payout?
- Are you comfortable with your inflation assumptions and understand their impact?
- Have you stress tested your plan against possible unforeseen scenarios?
- What considerations have you made for healthcare costs through retirement?
- Do you know the total of your basic monthly expenses and bills both pre/post retirement?
- Have you considered all the costs and taxes associated with real estate expenses?
- What are your annual vacation costs and how will those change over-time?
- How much do you spend on recreation/hobbies and how will that change over-time?
- Have you determined the future cost of replacing automobiles?
- Have you considered the costs of health care both pre/post retirement?
- Have you considered how much you might spend on weddings for your children?
- Have you considered the purchase of a second home and the costs associated with it?
- Have you considered charitable contributions you are making or plan to make in the future?
- Have you considered any future education expenses for children or grand-children?
- Do you periodically review the time-horizons for your investments?
- Can you articulate your investment strategy?
- What investment principles is your strategy utilizing?
- Is your portfolio adequately diversified and allocated across many major asset classes?
- Do you receive investment behavior coaching?
- Are there mechanisms built-in to you strategy to protect against human emotion?
- Do you know the cost of your underlying investment products?
- Is there a strategy to position your investments to take advantage of market volatility?
- Do you panic during in a market downturn?
- Do you regularly review investment objectives and material life changes with a CFP?
- Have you completed the bare minimum estate planning package (wills & POA)
- Have you determined if revocable trusts are needed to help execute your wishes?
- Are Irrevocable Trusts necessary in your estate planning needs?
- Is your net worth higher or projected to be higher than the exemption limit?
- Have you considered utilizing gifting strategies to transfer wealth the next generation?
- How are you using your wealth to leave a legacy of values to the next generation?
- What have you done to prepare your beneficiaries to be good stewards of your wealth?
- Do you periodically review your estate plan and amend it as needed?
- Do your CPA and Financial Planner collaborate together
- Are you utilizing tax loss harvesting strategies
- Is there a need to utilize a donor advised fund
- Does your CPA provide tax planning meetings for strategies to reduce tax liability?
- Are you utilizing all appropriate deductions and credits when filing your taxes?
- Are you maximizing the use of tax advantaged accounts?
- Do you know what marginal tax bracket you are in?
- Do you know what your effective tax rate is?
- Are effectively utilizing business tax deductions?
- Are taxes filed timely and accurately?
- Do you have adequate coverage in the event of your death to attain your financial goals?
- How would your goals change if you or a spouse pass away unexpectedly and are those goals still attainable?
- What is the plan should you need old-age nursing care?
- Do you anticipate having a large estate tax liability?
- Do you have adequate property & casualty coverage?
- Is there a need for key-man life insurance? (Business owners/managers)
- Is disability insurance something you should consider?
- Do you own any cash value life insurance policies? When were they last reviewed?
- Do you own any annuities? When were they last reviewed?
- Do you have an emergency fund of 6-12 months?
- Are you holding too much liquid cash given your existing goals?
- What rate of return are you on earning on cash?
- Does your cash increase automatically as rates increase?
- Is your cash insured with FDIC insurance?
- Are your cash management accounts electronically linked to your investment accounts?