When you look at your overall financial picture, what do you see? Do you see a unified, strategic, and focused portfolio where every piece of the puzzle works together to build wealth towards your financial life goals?
Or, do you see a mess of accounts that only confuse you; a 401(k) here, an IRA there, a random e*Trade account, a life insurance policy somewhere else? Do you even remember why you purchased certain products or opened particular accounts, or is your financial plan all over the place?
What is a Comprehensive Planning Review (CPR)?
When you think of CPR, you probably picture some dramatic TV show where the hero saves a victim by aggressively pumping their chest. Hollywood aside, the purpose of CPR is to restore circulation when the heart has ceased pumping on its own.
How does CPR relate to your finances? A Comprehensive Planning Review does the same thing. It gathers up all the moving parts of a financial strategy and makes sure they are circulating together to bring life and success to the financial plan as a whole. Every element of your financial plan plays an important role in your journey to reaching your goals.
A CPR analyzes these vitally important pieces of your financial planning strategy:
- Retirement Planning
- Investment Portfolio Planning (including your 401k)
- College Savings
- Risk Analysis
- Estate Planning
- Insurance Planning
- Cash Flow and Budgeting
- Debt Management
- Minimize Taxes
This isn’t something you do once and then go live under a rock. A financial plan is a living document, something that needs to be reevaluated and updated to continue meeting your needs, and a regular CPR makes this happen.
What To Expect From a Comprehensive Planning Review
When you sit down with me, we will work through all aspects of your financial life to create a plan, reduce risk, reduce fees, minimize taxes, and address the things that need to be addressed to move you forward.
We’ll get your assets organized, develop a custom financial plan so you can make your goals a reality, make sure your risk matches your current life situation, and then align your investment portfolio with your needs and goals.
Do You Need CPR?
How long has it been since you’ve revisited your investment philosophy and then made sure it lined up with your actions? Have you experienced any major life milestones since then? Have you added any products or assets to your portfolio?
If any of the following statements are true for you, you need a comprehensive planning review. It’s that simple.
- I haven’t looked at my statements in detail in a long time.
- I’ve had changes in my life, income, or goals since the last time I reviewed my finances.
- I am sabotaging my financial future by making emotional decisions with my money.
- I’ve never had one advisor review all accounts from all vendors.
- I have no idea what my management fees are.
- I have no clue what I’m doing.
If you are confused about money management, we need to sit down and work through the details. Knowledge is power. Organization and focus are pretty powerful too.
When it comes to your money, ignorance is not bliss, and you won’t be able to ignore your finances without consequences down the road. Take your current financial situation and turn it around. Organize your investments and sign up for my 14-day plan to radically improve your finances. Two weeks. It’ll be worth it, I promise.
For many people, a 401k is their largest retirement account. It deserves your undivided attention. Download our Ultimate 401(k) Guide for a step-by-step strategy to master your 401(k), including a prioritized checklist. It’s free!
Pathway founder and principal Greg Brown is a fee only financial advisor with broad financial planning and investing expertise. Greg’s financial advice has been featured in publications like Yahoo Finance, Bankrate, Investopedia (all articles here), Wall Street Journal, and USA Today. He holds a master’s degree from the University of Chicago and a mechanical engineering degree from Michigan State University. Prior to Pathway, Greg was a lead analyst at Morningstar and previously held engineering roles at Dell (including a US Patent).
Also published on Medium.