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Financial Planning Process

Created by PIEtechSM, we utilize MoneyGuidePro® financial planning software to help our clients better and more systematically plan for their financial future and retirement. Using MoneyGuidePro® allows us to more deeply explore and quantify if your expectations and goals for your future are reasonable, with the objective of helping you to either achieve, or maintain, your financial independence.

MoneyGuidePro®

MoneyGuidePro® has been voted the #1 Financial Planning Software for 10 straight years by Financial Planning magazine’s Tech Survey.

While MoneyGuidePro® is a very robust and sophisticated piece of financial and retirement planning software, the real value of the tool is the simplicity of its output. We have found most of our clients want a customized financial and retirement plan that provides logical and easy-to-understand results – MoneyGuidePro® delivers both.

What is MoneyGuidePro®?

MoneyGuidePro® is a goals-based*, financial planning program which allows Towerpoint Wealth to work collaboratively with you to create a customized retirement probability analysis plan to serve as a roadmap for your future.

Unlike tools of the past that only delivered static, paper-based outputs, MoneyGuidePro® allows inputs to be altered in real-time, creating multiple scenarios for us to review with you. MoneyGuidePro® also identifies intangibles such as expectations and concerns. This allows us to connect numbers to your true intentions and needs.

MoneyGuidePro® is interactive.

Adjustments can easily be made during a review meeting, and Towerpoint Wealth clients can be directly involved in the creation of their plan.

MoneyGuidePro® is web-based.

The only comprehensive financial planning package that is completely web-based, allowing you to access your plan from your home, office, or mobile device.

We believe that MoneyGuidePro® is the only goals-based planning system sophisticated enough to help us construct customized, high-quality financial and retirement plans for Towerpoint Wealth clients.

*See below for an explanation of goals-based financial planning.

 

MoneyGuidePro® Benefits of Planning Video

How Does MoneyGuidePro® Work?

From an analytic perspective, MGP runs a variety of tests, known as Monte Carlo simulations. Monte Carlo simulations furnish us with a range of possible future outcomes and associate a tangible probability for any potential choice of action. These Monte Carlo simulations show extreme possibilities – the outcomes associated with “going for broke,” and also for extremely conservative decisions, along with all possible consequences for “middle-of-the-road” decisions.

Ultimately, this allows us to collaboratively explore and analyze best and worst-case scenarios, based on your 1.) before and 2.) after-retirement spending needs, and possible capital market outcomes, to ensure you are in the best possible position to succeed in retirement.

MoneyGuidePro® also helps us to provide various “what if” scenarios.

These scenarios allow us to work with you to explore and analyze multiple future alternatives, and measure how sensitive a plan is to tax changes or increased longevity.

MoneyGuidePro® provides both stress testing and risk management.

This helps us see what might happen to a plan across a range of real world uncertainties (e.g., down markets, premature death, or the need for long-term care).

At the conclusion of the planning exercise, you will have a more complete and comprehensive understanding of your financial picture and ability to retire or stay retired, and will be able to identify the decisions and behaviors that will lead to the highest probability for your desired outcomes.

What Is Goals-Based Financial Planning?

We believe that creating a plan begins with establishing what is most important to a client—learning what their goals are. Clients want to know how they can use their financial resources to accomplish their goals.

Goals-based financial planning is...

the process of helping clients prioritize these goals and determine the optimal plan to achieve these goals.

 

Goals-based is focused on all aspects of your financial life, not just those relating to retirement. The goals-based planning process also looks carefully at the interactions between all the various (and sometimes competing) goals you may have.

 

Too many firms lose sight of the basic objective of the financial planning process — to distill the complex universe of financial choices down to a critical few recommended actions that will most positively impact your financial wellbeing. We believe goals-based planning is the best way to reach these recommended actions.

 

Conversely, traditional planning, also known as, cash flow-based planning attempts to model all variables in a financial plan. Consequently, cash flow-based planning has far more assumptions than goals-based planning and more often than not, many of these assumptions prove to be incorrect. The adage, “garbage in, garbage out,” can certainly apply to cash flow-based planning. Ultimately, this can result in a plan that is neither accurate nor useable for you.

 

Finally, cash-flow based planning often has complicated outputs that can be hard for you to understand. We feel that if you do not fully understand your financial plan, there is no way for you to take the necessary steps to follow the roadmap the plan lays out.

Not a Client? Still Want to Try MoneyGuidePro®?

If you would like a free trial of MoneyGuidePro®, please email Steve Pitchford, Director of Tax and Portfolio Planning, at spitchford@towerpointwealth.com.

Steve will create an online MoneyGuidePro® profile for you, email you with a link to your plan and the password to access it, allowing you to initiate your MoneyGuidePro® plan on your own time.

We are here to offer any assistance needed as you create your plan at no cost or obligation.

More Questions About MoneyGuidePro®?

Please email us at info@towerpointwealth.com, or visit MoneyGuidePro’s FAQ page HERE.

MoneyGuidePro® Resources:

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