What We Do - What Does "Financial Planning" Mean?

What We Do - What Does "Financial Planning" Mean?

What We Do at Transformative Financial

In this video, I give a quick overview of what actually goes into a “financial plan” and how I structure this process with clients.


Patrick: What exactly do we do at Transformative Financial? Over the years I've seen how financial planning can transform the lives of clients for the better, but what the heck does “financial planning” mean to begin with?

To me it's a process of organizing your finances, covering foreseeable risks and then methodically moving you along the way towards financial Independence over time. Like financial planning, financial Independence is a little bit of a fuzzy term, but for your financial life I want you to think about what that means to you.

What does that look like when you get there? How you feel when you get there and then finally, what are you going to do along the way to enjoy your life? That's what we're after with this process.

In order to help people visualize what the financial planning process is, I've created what I call my Financial Transformation Process. I’d like to walk you through that really quickly so let's get started on that.

Here's a quick graphical representation of the financial transformation process that I walk clients through. We start up here at the top left of the Clarity phase. We start with "Hey, where are you?" This is your net worth statement where we find out what the starting point is. From there we look at your spending, your savings, your investment and we get a current trajectory that you're on, where are you headed right now.

Then finally in the Clarity phase we take a look at what financial goals you might have. Where do you want to go? What’s the point of building all this wealth? What is your endgame here?

From the Clarity phase we move down to the Coverage phase and here it's all about covering you against foreseeable risks.

We start by covering your being with your health insurance and disability insurance, make sure that's okay. We cover your family, this is life insurance and estate planning. And then finally we cover your stuff, your homeowners insurance, auto insurance, liability insurance. All of this is about making sure that you’re covered from foreseeable risks.

From there we go down to the Creation phase. In this next step down at the bottom left, what we do is we compare that current trajectory and your financial goals and we make a plan to shift that trajectory to the point where you're going to meet your goals out in the future so we do the work that's necessary to get you from where you are to where you want to be.

The next step is to create leverage along the way. We're going to maximize that plan. We're going to maximize the efforts of what we're doing to shift your current trajectory the default trajectory to where you want to be and this is where meeting regularly comes into play to have course corrections over time. And then finally we're going to work on creating a legacy. At some point you're going to get to financial independence and your needs are going to be met and it's all about what kind of legacy do you want to leave?

Do you want to leave a bequest to your children? Do you want to support — whether it's through your time, money, effort — the community or a cause? And we're going to make sure we do this along the way as well because it's not something that just happens at the “finish line”. It's something that happens over time. That's a quick overview of the Financial Transformation Process.

As you can imagine, after going through this process, clients are in a much stronger financial position. But life often changes and quicker than we realize a lot of the time. Whether it's a change in family dynamics, an unexpected financial need, or a twist in the road, change is a constant in our lives. The process of meeting on a regular basis and making small course corrections overtime is an important part of this process.

It's a lot easier to make a small course correction in a given year than it is to let things go for years and years and then have to make drastic measures down the road. It's important for me to meet with my clients on a regular basis to make sure that they're tracking the plan and if things change, "Hey, what can we do right now to make sure that we stay on the trajectory that we want overtime?" Also, what gets measured gets done so there's an accountability aspect to this process as well.

That's the process, that's what we do in a nutshell. If you've got questions about this, please feel free to reach out to me. My contact information is below in the show notes or on the website. It's patrick@transformative-financial.com and of course, feel free to call me (404) 500-9261.

Thank you for watching.


Patrick King is a financial advisor and the Founder of Transformative Financial with years of experience helping investors grow their wealth and achieve their financial goals. He specializes in providing financial planning and investment management for executives with complex compensation arrangements and families who are pursuing financial independence. Patrick is a CERTIFIED FINANCIAL PLANNER™ certificant. To learn more about Patrick, connect with him on LinkedIn or visit www.transformative-financial.com/about

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