Financial Planning Concepts


Areas Of Identified Planning Objectives

General Planning

Net Worth

A net worth analysis is a snapshot of a client’s current assets and liabilities. For clients who carry substantial debt, the analysis should also include a debt-to-income ratio calculation (total monthly debt payments divided by total monthly income) and recommendations for paying down their debt.

Cash Flow

Identifies potential cash flow problems and explores opportunities to direct current income toward achieving your financial goals and objectives.

Goal Planning
(e.g. Education Planning)

Projects the estimated capital needed for a specified goal, such as education, a wedding, or other major purchases. The analysis takes into account the current assets earmarked for a specific goal and provides you with various alternatives available, based upon factors such as modifying the timing or amount of the goal, additional or alternative savings and investment strategies, and risk tolerance.

Investment Planning

Includes an examination of your current assets and investment risk tolerance. The investment analysis projects investment needs and expenses for a specified goal (e.g. education) and analyzes current assets designated for the specified goal. Asset Allocation analysis provides you with various additional or alternative strategies available based on your time horizon and risk tolerance. Additionally, investment planning will include Monte Carlo simulation to determine the probability of meeting your objective(s).

Retirement Planning

Retirement planning projects the estimated retirement needs and expenses at a specified retirement date. The analysis may be focused in accumulation as well as distribution of retirement assets. The analysis also takes into account the current assets designated toward retirement, estimated social security payments and other funding sources, such as employer pension plans. Illustrations provide the client with the various alternatives available, based upon such factors such as different retirement dates, additional or alternative savings and investment strategies, and risk tolerance.*

Risk Management Planning

Risk Management addresses your ability to protect against unexpected events and is usually addressed with insurance products. Specific analyses and recommendations in this area address: life insurance, disability insurance**, long term care insurance, and health insurance.**

  • Life Insurance Planning
  • Long Term Care Insurance Planning
  • Professional Liability Insurance Planning**
  • Disability Insurance Planning**
  • Property & Casualty Insurance Planning**

Advanced Planning

Estate Planning

Estate Planning involves an analysis of a client’s goals and objectives for the distribution of property. This analysis includes an examination of a client’s current net worth and the distribution of property. This analysis also includes an examination of the client’s current net worth and the distribution of property based upon a client’s current estate plan. Projected estate taxes** and related settlement costs based upon various assumptions will be considered. The analysis explores alternatives for minimizing those settlement costs such as titling assets, using trusts, lifetime gifting strategies and charitable planning. Also included, is an examination and comparison of funding sources to provide liquidity.

Business Planning

There are a number of issues that face business owners including choosing an entity, obtaining business insurance and transferring the business upon death, disability or retirement. Business Succession planning incorporates an analysis of the available methods of transferring ownership and operational control of a closely held business to co-owners and/or heirs based upon various assumptions. This analysis includes an examination of a client’s current business situation. Additionally, the analysis explores alternatives to satisfying a client’s objectives while minimizing transition costs (e.g., using trusts, gifting strategies, buy-sell agreements). It also examines funding sources such as life insurance and other financial vehicles, which are used to facilitate the transfer of the business and provide liquidity in meeting estate planning objectives.***

Executive Benefits

Executive benefits planning may include an analysis of both nonqualified and qualified (i.e., tax sheltered) retirement benefit plans. Nonqualified employee benefits plans include a review of the available methods for providing nonqualified retirement, death and/or disability benefits to highly compensated employees, based upon various assumptions. This analysis explores alternatives to attract, reward and retain these employees for both profit and non-profit entities, in a manner consistent with a client’s objectives. Additionally, qualified employee benefits plans provide an analysis of the available tax sheltered pension and profit sharing plans and/or other tax sheltered retirement arrangements available under current tax law. The analysis also examines the options available, based upon factors such as corporate demographics (e.g., number, ages and compensation levels of employees) and client objectives. Finally, both nonqualifiedand qualified employee benefits planning examine funding sources such as life insurance and investment** products.

Charitable Planning

Addresses your philanthropic goals. Recommendations incorporate strategies and discuss vehicles that individuals can use to improve their situations through “planned giving.” Planned giving involves a donation substantial enough to require its being part of an individual’s or family’s overall financial and estate plan.

Three Possible Implementation Options

No Implementation

Implementation as a Financial Advisor / New York Life Insurance Company Agent / NYLIFE Securities Registered Representative

Implementation with other Financial Advisor / Agent / Registered Representative

New York Life Agent


Life Insurance
Disability Insurance*
Long-Term Care Ins.
Fixed Annuities**

NYLIFE Securities Registered Representative1


Mutual Funds
Variable Annuities
Variable Life
Stocks#, Bonds#

Financial Advisor

Asset Management Fee

Lifetime Wealth Portfolios
— professionally managed accounts