Spectrum's approach to financial planning starts with obtaining financial and other information from the client, including information about attitudes, goals and objectives. We then prioritize which goals and objectives are most important, analyze your information to develop recommendations for your consideration, and explain implications and potential outcomes of each alternative. Clients are under no obligation to implement any of the recommendations outlined in the plan, either with Spectrum or with any other firm.
Financial Independence/Retirement Income Planning
Spectrum provides guidance in planning for financial independence and a comfortable retirement based on careful assessment of clients' goals and estimates of future income and expenses. We help determine requirements for future income, develop asset-growth projections and make specific recommendations for implementing the retirement program. Our analysis includes pension- and Social Security-benefit strategies, a complete investment analysis and consideration of the impact of various lifestyle scenarios on income requirements.
This analysis lays the foundation upon which we build clients' long-term investment strategies. We will update the financial independence analysis periodically to ensure that the plan’s implementation is on target.
Spectrum works with each client to develop a strategic approach for management of financial resources to preserve and grow wealth. We begin with an objective and realistic assessment of each client's current assets and relate that assessment to his or her short- and long-term personal and financial goals. Our recommendation for asset growth, savings, income generation and risk management take into account risk-tolerance levels, investment time horizons, tax efficiency, liquidity needs and income requirements.
When compiling an investment plan, Spectrum will build a customized investment portfolio designed with a goal of increasing returns per unit of risk acceptable to the client. We provide illustrations of more efficient portfolios and a tax-sensitive transition to achieve them.
Spectrum evaluates and projects the estimated future financial needs arising from a premature death, long-term disability or long-term care need of a loved one, business owner or key employee. We then review available resources for income, including current insurance programs and employee benefits. We will provide a written plan identifying strengths and weaknesses of the current program as well as strategies to mitigate the identified risks.
Spectrum helps clients minimize estate-tax liabilities and ensure preservation of estate assets for the benefit of the intended beneficiaries. We calculate and evaluate the impact of estate taxes, then design specific tax-saving and wealth-transfer strategies. Our approaches include maximizing the Unified Tax Credit for gifts; recommending various trusts, partnerships and limited liability corporations; using insurance to provide for estate liquidity, and protecting the future growth of the estate.
Spectrum also works with clients who demand solutions for special situations such as planning for the perpetuation or liquidation of closely held businesses; charitable gifting; second marriages; creditor protection, and supplemental needs of the handicapped children. We also assist our clients with the non-tax aspects of estate planning and often act as the "quarterback" of the planning team by coordinating our services with legal counsel.
401(k) Profit Sharing
Spectrum offers consultation and implementation services to plan sponsors regarding their retirement benefit plans. During the first stage of services, Spectrum will meet with the plan sponsor to determine the goals and objectives for the plan. Thereafter, Spectrum will develop options that meet plan objectives and provide implementation strategies that may incorporate model portfolios and/or assist in the selection of mutual funds for the plan.
Our model portfolios are designed and monitored with the same diligence and ongoing research rigor as our investment services strategy. Once the risk model is selected, we handle all rebalancing and investment selection.
Spectrum will also provide training and education and answer general questions from plan participants relating to their 401(k) selections. Spectrum typically performs periodic reviews (no less than annually) of the investment options, and works directly with each plan's third-party administrator and other service providers.
Spectrum provides helpful guidance in planning for the cost of education. We will help determine the inflation-adjusted cost of college expenses and provide the client with various funding methods, taking into consideration:
- current assets
- future savings
- financial aid availability
- the impact of taxes on alternative funding approaches
Spectrum works with each client to evaluate cash flow based on how income is currently being spent, and then examines total income versus total expenses, including savings. We use this information to make prudent recommendations regarding short-term and long-term financial goals, including debt restructuring, budget planning and savings strategies.
Comprehensive Financial Plan
Spectrum will prepare a complete financial plan; our objective financial analysis and assessment is designed to help clients understand their financial position and then work toward achieving specific, long-term goals.