Financial Planning
While a needs analysis is often sufficient to guide the purchase of insurance and investment products, sometimes a financial
plan not connected with a purchase and paid for through a fee is most appropriate. Developing a financial plan first requires
defining the scope of the work, whether it is to be a comprehensive plan, a plan focused on just a few specific areas, or an
investment consulting engagement for a specific purpose, such as asset allocation.
Comprehensive financial planning (as defined by the CFP board of standards) encompasses the following six areas, listed in hierarchical order:
1. FINANCIAL POSITION
- Balance sheet
- Cash flow statement
- Debt management
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2. PROTECTION PLANNING
- Life insurance
- Disability income insurance
- Long-term care insurance
- Property/casualty insurance
- Key-person coverage
- Business Overhead expense coverage
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3. INVESTMENT PLANNING
- Determining cash reserve
- Asset allocation
- Education funding
- Goal funding
- Investment research and analysis
- Hypothetical illustrations
- Portfolio optimization
- Monte Carlo
- Options analysis
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4. TAX MANAGEMENT
- Income tax analysis
- Estate tax analysis
- Alternative minimum tax analysis
- Capital gain/loss analysis
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5. RETIREMENT PLANNING
- Social Security
- Employersponsored plan analysis
- Distribution planning
- Funding analysis
- Non-qualified plans
- Executive compensation
- Split Dollar
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6. ESTATE PLANNING
- Will analysis
- Estate tax analysis
- Charitable giving
- Estate equalization
- Wealth preservation and transfer
- Trust utilization
- Buy-Sell funding
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Fees for financial planning services range between $500.00 for a basic plan for clients of moderate means to $15,000.00 for complex plans for high net worth clients.
Plans may be delivered using approved financial planning software, including our
Wealth Management Program, which combines financial planning and internet based account aggregation to provide a dynamic financial plan which is continuously updated.
Neither MassMutual nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters.
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