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Financial Planning Defined


“Financial Planning” is a term that is overused and misused. When you hear us say “Financial Planning” at Lauer Financial, we are talking about the Six Key Areas of Financial Planning as outlined by the Certified Financial Planning Board of Standards.

Financial Position

  • Knowing your current net worth
  • Tracking your current income and expenses
  • Managing debt
  • Projecting your current net worth, income and expenses

Managing Risks

  • Providing for survivors in case of premature death
  • Replacing earning power if disabled
  • Protecting your assets if long term care required
  • Protecting your ability to meet your accumulation goals
  • Protecting your ability to pay off outstanding debt
  • Guarding against identity theft and credit fraud

Accumulating Wealth

  • Creating and maintaining an adequate cash reserve
  • Providing for education expenses
  • Buying a house or vacation home
  • Saving for retirement
  • Reviewing your investment portfolio

Tax Management*

  • Minimizing federal and state income taxes
  • Protecting future income tax liabilities
  • Developing long term tax reduction strategies

Retirement Planning

  • Ensuring adequate retirement income from:
    -  Government benefits
    -  Employer-sponsored plans (401(k), 403(b), 457, pensions, etc.)
    -  Personal savings and investments
  • Projecting the impact of an early or delayed retirement
  • Providing sufficient funding for potential health expenses

Preserving Your Wealth

  • Determining exposures to estate and inheritance taxes*
  • Outlining appropriate estate planning vehicles
  • Document preparation by legal counsel for desired outcome*

“Comprehensive” financial planning encompasses all six areas. “Focused” financial planning may address one or more areas.

*Neither Lauer Financial nor Cambridge provide tax or legal advice. Please consult a legal or tax professional for specific legal or tax advice.