Personal Financial Planning, performed by CPA
PFSs, does not involve selling products. Only CPAs can be Personal Financial
Specialists, an accreditation given to CPAs by the American Institute of
CPAs (AICPA).
Currently, there are only
approximately 2,800 CPAs in the nation with this designation. In the State
of Oregon, CPA Personal Financial Specialists are "fee based" planners.
We do not collect commissions, referral fees or other compensation; only
the fees paid to us by our clients.
Benefits of having a Personal Financial Plan
Many of our clients have requested guidance on
how to make their money work for them, instead of the other way
around. A Personal Financial Plan (PFP):
Beginning the Processdefines financial goals and objectives. provides a budgeting tool to monitor personal spending patterns to identify areas of expense, risk and potential cost savings. provides a mechanism to monitor the progress of meeting those financial goals and objectives. identifies areas of risk exposure (e.g. insufficient/excessive insurance coverage, tax consequences, poor investment performance, etc.) defines risk tolerance for investments. develops investment strategies. monitors and evaluates the performance of investments identifies areas of tax savings. organizes and develops strategies for estate planning plans for "financial independence" (retirement!) plans for business succession. identifies opportunities to plan for providing income and investments for family members. provides information necessary to prepare Personal Financial Statements when required.
Commit to paying yourself first. Define your financial and life goals in terms of your
- Immediate goals (1 year)
- Short term goals (2-3 years)
- Intermediate goals (4-6 years)
- Long term goals (15 years+)
Like a musical performance, the creation of a PFP is a collaborative effort. Think of yourself as the conductor, your CPA PFS the composer/arranger, and the other professionals which provide the financial vehicles and documents to make your PFP a reality as the members of the orchestra.
As the conductor, you require a musical score, a written plan of action. This is where we come in. We arrange your existing financial components and compose new elements, integrating them to create a harmonious whole - your Personal Financial Plan. Top
Materials to gather
You will need to gather various financial, tax
and insurance documents. Although the tax return is usually the starting
point, we frequently ask for supporting statements to obtain information
necessary to complete the PFP. The following list is not all-inclusive,
but is useful as a basic checklist:
Formulating the PlanTax returns for the past two/three years. Year end or current investment (stocks, bonds, mutual fund, etc.) summaries. Retirement plan statements. Insurance policies. Summary of real estate owned. Other assets owned (if relevant). Statements of indebtedness. Wills or Trust documents. Top
Once the documents have been gathered and reviewed, a plan is formulated in the following steps:
- Define needs, goals and objectives
- Define risk tolerance
- Define investment strategies
- Prepare written plan
- Review plan recommendations with client
- Revise plan recommendations
- Prepare implementation procedures
- Monitor the progress of the implementation
- Revise/modify the PFP
Thank you for your interest in this service, and we hope to be part of your team in the near future.
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