Our Financial Planning Process
At C.M. Carrillo Financial Advising, we pride ourselves on taking a strategic and well balanced approach to the overall financial planning process. Furthermore, it should be emphasized that our process is different because when we work with our clients, our process is not based on a sales cycle. We reject the idea of conducting business in that way.
Instead, our process was specifically designed with a very sincere desire to help our clients navigate this journey that we call life, which goes far beyond simply helping one manage their finances. Consequently, how the conversation begins with each of our clients is of the utmost importance to us. We wholeheartedly believe that a conversation with a new client must absolutely begin not with a particular product or service that we have to offer, but rather with a pure focus on the client’s vision for the future as well as his or her desired lifestyle.
We are very proud of our process and it is actually one of the things that allows us to effectively differentiate our firm from so many others within the marketplace.
If something is important to you, you make time for it.
Are you ready to begin?
The 3 Phases of Our Process
- Vision & Desired Lifestyle
The first phase of our process involves learning about the client's vision and desired lifestyle. This requires the client to invest the time necessary to work through our Discovery Process Self Reflection, which is the name of both a document as well as an exercise.
Link: The Carrillo Lifestyle Page - Goals & Objectives
The second phase of our process involves taking the client's vision and desired lifestyle and extracting their specific financial goals and objectives. This phase of the process is also included in our Discovery Process Self Reflection. - Solutions & Strategies
The third phase of our process involves taking the client's specific financial goals and objectives and identifying appropriate solutions and strategies to incorporate into their financial plan in order to help them transform their vision into their reality.
Link: Our Solutions Page
It should be noted that each phase of our process has no specific or predetermined timeline. It really depends on how much conversation is necessary in order to develop a clear understanding of what it is that a client would like to accomplish. We believe it is important to allow the conversation itself to dictate how the process unfolds. At the end of the day, we are always more than happy to invest time with our clients because we genuinely care about them.
Furthermore, within the world of finance, trust is essential, and it should be noted that trust takes time and interaction. That is why we actually have a very sincere desire to get to know each of our clients on a much deeper level. Consequently, we are committed to listening and asking the right questions. Ultimately, beginning the process is as easy as deciding that now is the time to begin a conversation. Individuals simply have to be willing to invest the time necessary to do some self-reflection and then invest the time necessary to have a conversation with the Financial Advisor about what was discovered during the self-reflection.
Should you and the financial advisor agree that it makes sense to proceed
to phase three, the process can be summarized with the following four steps.
Phase 3: Solutions & Strategies
- Analyze
Before we make any recommendations, we must first analyze what you currently have in place. This involves reviewing any in force insurance policies and/or your current investment portfolio in order to identify any gaps or issues that may exist.
- Recommend
Once we have developed a clear picture of your present circumstances, we then go about the process of matching up your financial goals and objectives with appropriate products and services. Once identified, the advisor will then provide you with specific recommendations. When we do this, we believe in taking an educational approach.
- Implement
If you agree with your advisor’s recommendations, together we will work to implement the agreed-upon strategy and help you secure the required products and services.
- Review
Because your financial situation is bound to change over time, your financial advisor will conduct periodic reviews with you in order to monitor your progress and subsequently make any changes to your plan as needed.
Now let’s take a look at all of the components that comprise the overall financial planning process.
This involves going back to the basics, which can be illustrated by The Financial Planning Pyramid.
The Financial Planning Process & The Financial Planning Pyramid
At its core, what The Financial Planning Pyramid represents is many years of collective experience and expertise, which is really the result of generations of Financial Advisors coming together and agreeing upon the most appropriate way to go about the overall financial planning process. Consequently, at the end of the day, we don't have to reinvent the wheel. We simply have to follow a process that has been proven to work.
Risk Management
We begin by explaining to our clients that just as you wouldn’t build your home without a solid foundation, the same is true for your financial plan. The base of the Financial Planning Pyramid is a level of planning that we refer to as Risk Management. Risk Management involves various insurance solutions that help individuals, families, and business owners effectively mitigate certain threats. We use the word threats very deliberately because these are things that can derail one’s financial plan and jeopardize one’s ability to retire when they want and how they want. Therefore, by addressing each threat, we are essentially able to help our clients construct a solid and strategic financial plan.
Wealth Accumulation
Then we move on up to the Wealth Accumulation level of planning. Wealth Accumulation involves one’s investments and retirement preparation. Generally speaking, Wealth Accumulation is everybody’s favorite topic of conversation, which is why experienced Financial Advisors will take a moment to remind all of their clients that they always have to eat their vegetables before they have desert. – In other words, do not forget about the foundation of your plan. With that being said, at C.M. Carrillo Financial Advising, we have a really phenomenal platform that we are able to bring to the table in order to help our clients access the financial markets and invest for the future.
Wealth Preservation & Distribution
Finally, we move on up to the Wealth Preservation and Distribution level of planning. Wealth Preservation & Distribution involves one’s Estate Planning. Wills and Trusts often come into play at this stage of planning, which of course is when it becomes necessary to start working with a trusted Estate Planning Attorney. The Financial Advisor should be able to refer you to a trusted attorney if you do not already have one. It should be noted that Annuity Contracts may also come into play at this stage in the overall planning process. Estate Planning is very important for many reasons. It is a way to protect your assets, control of your assets, and strategically manage multigenerational wealth.
Special Notes
Two common questions are where The Budgetary Process and The College Planning Process fit into the overall financial planning process.
- The Budgetary Process
Ideally, The Budgetary Process should be completed either before you and your advisor begin the Risk Management level of planning, or it may be completed during the Risk Management level of planning.
Many financial advisors will include a client's Household Allocation Plan as a part of their Life Insurance Needs Analysis, which is actually very responsible. One's Household Allocation Plan is an exceedingly relevant component of the Needs Analysis that is necessary in order to ascertain the appropriate level of life insurance coverage for an individual. That being said, The Budgetary Process can certainly be revisited at any stage of planning. Ultimately, it is always a good idea to address it sooner rather than later.
Link: The Allocation Plan Program Page - The College Planning Process
The College Planning Process is very involved, and generally speaking, it should be started as soon as possible. There are certain planning strategies that can come into play at both the Risk Management level of planning as well as the Wealth Accumulation level of planning. In short, we consistently recommend that all of our clients start their college planning as soon as possible because when the child is still young parents still have time on their side. Late stage college planning can very much limit one’s options.
Link: The College Planning Page
Vision To Reality
Investment Advisory Services offered through Exodus Wealth, LLC, a Registered Investment Advisor. C.M. Carrillo Financial Advising and Exodus Wealth, LLC are separate entities.
C.M. Carrillo Financial Advising and Exodus Wealth, LLC do not render tax or legal advice.