Analyzing Personal Finances

Do you need help analyzing your money? The following is a revised discussion from my previous Consumer and Family Financial Services work in the Forbes School of Business and Technology at Ashford University. This revision is part of my Pre-Consultation Guide and Personal Finance Checklist that helps people complete the Financial Planning Workbook. Those works are available upon request. Here is a summary. The core elements of a financial plan for an individual or household of family members can be summarized in the following seven point analysis. The synopsis only describes distinguished work. It includes the purpose and prerequisites for each section of a comprehensive financial plan.

1. Cash Flow and Net Worth Analysis. The purpose of cash flow and net worth analysis is to accurately analyze the cash flow and net worth for an individual or household of family members by constructing a simple net cash flow and simple balance sheet evaluation. The prerequisites include gathering all income, expense, asset, and liability items.
2. Tax Analysis. The purpose of tax analysis is to provide an individual or household of family members with a comprehensive analysis by detailing tax issues in a financial plan. The prerequisites include gathering copies of the last two tax returns with current year-to-date statements.
3. Retirement Analysis. The purpose of retirement analysis is to provide an individual or household of family members with a comprehensive retirement analysis to determine if current investments and savings will enable sustained long-term retirement. The prerequisites include gathering copies of all pension, profit-sharing, government, employer-sponsored, and individual retirement plans along with current statements.
4. Insurance Analysis. The purpose of the insurance analysis is to thoroughly analyze the risk management strategies of an individual or household of family members by accurately determining how much life insurance is needed to replace income and if any of the following need to be covered: health/disability, long-term care, property/liability, and umbrella insurance. The prerequisites include gathering copies of all insurance policies with current statements.
5. Investment Analysis. The purpose of the investment analysis is to thoroughly analyze risk tolerance and asset allocation for an individual or household of family members to accurately discuss the risk and return of the current portfolio, determining what is optimal, and how to alter the portfolio. The prerequisites include gathering copies of all investments with current account statements.
6. Estate Analysis. The purpose of the estate analysis is to thoroughly analyze all possible options in the financial plan and determine if they are relevant to the individual or household of family members. The prerequisites include gathering copies of all property titles, wills, and other estate planning documents.
7. Specialized Analysis. The purpose of the specialized analysis is to provide comprehensive of funding needs, savings problems, and refinancing scenarios for the individual or household of family members. The prerequisites include gathering copies of all finance-related documents.

These are common matters in my financial consulting, planning, and management practice. This is merely a summary of core elements in a financial plan for an individual or household of family members. The synopsis describes only distinguished work. It includes a summary of the purpose and prerequisites for analysis. This revision is part of the Pre-Consultation Guide and Personal Finance Checklist that helps people complete the Financial Planning Workbook. Those works are available upon request. Let me know if you have any questions or concerns about the process. I look forward to helping you in the future!
 
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