Investment planning is only one aspect of your holistic financial plan. Your Barrington financial plan is based on all of your personal and business financial goals; it is inclusive and cohesive.
Barrington introduces clients to the concept of “Net Worth Management.”
Net Worth Planning
The College for Financial Planning defines “Net Worth” as “the residual value after liabilities are subtracted from assets – the amount that is owned by the individual or family, unencumbered by debt.”
We call the Barrington brand of financial planning “Net Worth Planning,” and our ongoing process is “Net Worth Management.” When your debts rise as fast as your assets, your increase in net worth is zero.
Barrington clients are committed to growing their net worth, accumulating wealth not simply to have wealth, but rather to achieve goals, expectations, and, in short, to turn their dreams into reality. Barrington advisors are geared to help you decide where you want to go, what dreams you want to making real, and then doing what it takes to succeed, which includes managing debt and cash flow as well as an investment portfolio.
- Effective wealth accumulation and wealth management involves balancing your need to increase your net worth with your need for available cash. Barrington advisors help clients plan for cash flow and liquidity needs to help reduce uncertainty involved in converting an asset to cash for an immediate need.
- Balancing work life and family life is always a challenge. Managing your career is an equally tough challenge, especially during corporate transitions or the ups-and-downs of owning your own business.
Barrington helps with business planning in many ways: succession planning, transition from parent to next generation management, deciding whether or when to sell a family business, determining fair business valuation, and consulting on buy-sell agreements and terms of sale, to name a few.
- You work hard and try to save for home, education, leisure, and retirement. But if you die unexpectedly, are your children able to go to college? Is your family able to keep their home? Is money available to pay your final expenses? Protecting yourself against the unexpected is a vital element in financial planning. After working with you to calculate your protection needs, your financial advisor can suggest effective solutions to help keep you and your hard-earned money secure.
Life insurance is planning for the unexpected. Unlike any other financial investment – the stock market, your 401(k) plan, an IRA – with your very first premium payment life insurance provides the total amount of money you want to leave your family. You can build an estate with your permanent life insurance policy. And when your heirs receive this money, it is not necessarily taxed as income. Life insurance planning balances your assets with your long-term goals for you to be certain that you own neither too much nor too little.
Barrington advisors can help decide “how much and not too much” for life insurance, as well as disability, supplemental, and long-term care insurance.
- A home purchase may be the single largest investment you’ll make. Buying a home is more than a financial decision – for many, it’s a rite of passage. Whether it’s your first home or your dream home, a real estate plan is essential for turning your real estate dreams into reality.
- Certain products and investment strategies play key roles in financial plans, helping you to accumulate for special events, cash reserves or retirement. A financial advisor can help you design a balanced portfolio, as well as help you purchase a number of products, such as mutual funds, stocks, annuities. He or she can also help with opening retirement accounts, such as an IRA. Most financial advisors are registered to sell securities directly, but some aren’t. Ask your financial advisor if he or she is registered to do this.
- As parents, you want a quality education for your children. While most of us don’t argue the merits of higher education, the rising costs to achieve it give us pause. Only through effective planning can you expect the funds to be there when the time comes.
- You’ve worked a lifetime to build your wealth. Have you considered what will happen to it in the future? Will your assets be distributed as you wish or as the government decides?
Proper estate planning may help eliminate or reduce federal estate taxes, reduce the time and cost of transferring assets, identify an estate administrator, evaluate trusts, and keep your financial affairs private. It requires careful planning and a clear understanding of the tax implications of any decision. A Barrington advisor can help coordinate the efforts of your attorney and other professionals or even help you find the proper legal advice on estate matters.
- You’ve worked hard all your life. You want your money to work just as hard for you as you have worked to get there. Effective planning can help make this happen. While saving for retirement is often portrayed as an immense task, our clients prove every day that it’s possible. In order to retire comfortably, assets must be acquired, deployed, and managed. Like a business, there are administrative duties to attend to.
- Most Americans want to pay their fair share of taxes without paying more than necessary. Are you paying what the “after-the fact” tax return tells you to pay? At Barrington, we believe in being proactive for our clients, planning in advance to pay the minimum amount of tax that’s your fair share.