A One-Time Financial Plan or Ongoing Financial Planning: Which one is the best for you?

Financial planning is my firm's core offering as a fee-only, fiduciary financial advisor. However, not all clients' needs are the same. Therefore, we provide our financial planning services in one of two ways: a one-time financial plan and ongoing financial planning.

So which one is right for you?

What is a One-Time financial Plan?

The one-time financial plan is a limited-time engagement where we go through your entire financial life and assess where things are today. We discuss your goals and needs, assess your current financial situation, and then develop a list of action items to help you bridge the two. 

Who are the best candidates for a one-time financial plan?

You are a DIYer (Do-it-yourselfer)

If you are comfortable managing your financial affairs, a one-time financial plan is perfect for testing your theories and validating your assumptions. It will help you streamline the process and put the complete picture together.

For example, you may have numerous bank and brokerage accounts or multiple old retirement plans and want to consolidate and simplify. You may need to focus on your estate planning. Or, as you are closing in on retirement, the need to ensure you have your financial affairs in order becomes more acute. The one-time plan will help you tie up loose ends and provide the necessary clarity.

You have a relatively straight-forward situation

If you are an employee with a few retirement and investment accounts, a one-time financial plan may be all you need to ensure you are making the most of your available options. As your situation may not change for the foreseeable future, the task list of a one-time plan may be all you need for a few years. 

You have a specific goal or question to address

You feel confident that you have everything organized today but have a specific financial planning goal or question. Examples include:

  • Social security maximization strategies

  • Navigating the retirement income gap

  • Roth conversions

  • Portfolio optimization

We will model things out and give you a plan to meet your specific goal or provide you with enough information to address your question thoroughly.

You want a financial check-up

If your life has changed significantly and you require reassurance that you are still on track, it may be time to review your financial plan. The one-time plan will act as a financial check-up to ensure that you are and provide suggestions to course-correct if you are not.

A white puzzle with a pice which says financial going into a spot that says planning

What is Ongoing Financial Planning?

Ongoing financial planning (commonly referred to as comprehensive financial planning) is similar to a one-time plan in that we will go through all aspects of your financial life. However, we will be engaged throughout the implementation process and becomes your trusted advisor. As both CPAs and CFPs, adding income tax planning and preparation will make the offering even more comprehensive.

Who are the best candidates for ongoing comprehensive financial planning?

You earn lumpy income

If you own your business, receive equity compensation, or work on commissions, you may earn uneven income. In that case, you may want someone to help you navigate the financial planning and income tax planning processes. Planning around inconsistent income can be challenging, but it can provide some fantastic income tax planning opportunities while strategically growing your net worth. 

You are too busy to do it yourself

If you are burning the candle at both ends but understand the importance of financial planning, ongoing planning is a natural fit. We will guide you through the implementation process and address any questions as they arise. 

You have complexity

If you are a business owner or real estate investor, have multiple income streams, or own a complex portfolio of investments, you may benefit from ongoing planning. Most financial advisors' fees are based on assets under management. If you own non-traditional assets, finding an advisor that offers ongoing planning can be a challenge. Our fee for ongoing financial planning is independent of the assets we manage. So, even if you have investments outside of traditional stocks and bonds, we welcome the opportunity to work with you.

You want a partner

You feel like you need someone in your corner to help you through the process. This need is critical if the strategy takes a couple of years or requires a number of steps. Working with an advisor on an ongoing basis will ensure you meet your goals as your strategy evolves and help you address any issues along the way.

You are close to retirement and want to optimize

You have done a great job with your finances for most of your life. However, as retirement approaches, you realize the stakes are high. If you are close to retirement and want ongoing guidance on Roth IRA conversions, tax-efficient drawdown strategies, social security maximization, and legacy planning, ongoing financial planning is the obvious choice.

Choosing which one is right for you

Depending on your financial planning needs, you can choose between a one-time financial plan and ongoing planning. 

What happens if you make the wrong choice? Don't worry. If a longer-term need is identified during the planning process, one-time financial plans can become ongoing plans. And if you feel like your ongoing plan is more than you need, you can stop anytime. We will make sure you get the financial plan you need.


About the author:

JP Geisbauer is a Certified Public Accountant and a Certified Financial Planner ®.  He is the founder of Centerpoint Financial Management, LLC, a financial planning, investment management, and income tax planning firm located in Irvine, CA.  If you have specific questions regarding your situation, please schedule a complimentary 30-minute call here.

Disclaimer:

This article is for general information and educational purposes only.  Nothing contained in this article constitutes individual financial, investment, tax, or legal advice.  Before taking any action on any topic discussed in this article, please consult with your own financial planner, investment advisor, tax professional, and/or attorney for advice on your specific situation.

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