Our Process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 1

The first step is to gather the necessary data to ensure a thorough understanding of your situation. This becomes the basis for the creation of a financial model, which we use to evaluate your current situation. For Comprehensive Financial Planning clients, the model will show your current asset allocation, your net worth, the direction and rate of its change, your cash flow, income and estate tax liability and other items. Also, we will review your wills, trusts, life and disability income insurance, and any other legal arrangements you've created. Prospective Corporate Retirement Plan clients will be given a comprehensive breakdown of your current plan's fees, investment choices, contribution summary, compliance overview, and Third-Party Administrator relationships. Finally, an exhaustive breakdown of your Employee Benefits Plan. This model includes, but is not limited to, employer contribution breakdown, current plan options, compliance overview, bidding, employee education, and a renewal summary for all lines of coverage in-force.

 

Step 2

Step two is to develop your personal financial objectives. Frequently, our retirement planning clients say, "it's to make sure that I have a source of income that I cannot outlive, and secondarily, to leave a legacy for my family, and perhaps the community". Furthermore, business owners with a Profit-Sharing Plan often want to know the most cost-effective way to craft a plan most beneficial to them, their employees, and the company's bottom line. Finally, an Employee Benefits discussion where we answer business owners and HR Managers concerns about the cost and administration of their benefits package. But often it is more complex and involves thinking about things that you have never considered, prompted by questions that you have never been asked.

Step 3

Step three consists of identifying problems that are present in your current financial planning. This is a process of reconciling the likely outcome based upon your current arrangements, with your desired outcome as described in your objectives. It is in this third step that the full benefit of the financial planning process becomes apparent. Issues that you never thought of problems that you never realized existed will be identified - simply because your total picture was never so completely developed, and your objectives never so clearly and completely stated.

Step 4

Step four entails the development of recommendations - specific strategies for implementation. Equipped with pros and cons of each, and an economic model to determine their impact, you will be in the position to determine which is appropriate for you. Many strategies you will elect to implement, some now, some in the future, others you will reject. But the decision will be yours. The agreed upon strategies will be reduced to writing in a comprehensive report.

Step 5

The fifth step is implementation. Depending on your situation, this is where your other advisors may become useful. For example, your CPA will be instrumental in the documentation of many of the strategies involved, or a Pension TPA may be necessary to update your current Adoption Agreement.

You will have a game plan, a specific course of action to take. Armed with this information, you will be in a position like never before. Again, these are strategies that had you not first determined your basis (your objectives), and a method of evaluation (the financial model), then you would not have been equipped to pursue them.

Step 6

Step six is the ongoing review process. At least annually, an update of your personal financial plan should be done to encompass any changes in the economy and the tax law, as well as in your personal situation and objectives. As a result of this process, you can be comfortable that your financial plan continues to be up to date. For Corporate Retirement Plan clients, we commit to a minimum of one employee education meeting per year along with an annual plan review of the overall corporate retirement plan. Of course, medical insurance renews annually, and Gernon Muth & Associates is committed to negotiating the best rates for all our clients - every single year. During the open enrollment period we personally lead every enrollment meeting.

We have been doing all the above for over 50 years!