Our Planning Process
Our financial planning process starts with a couple of introductory meetings in which we are devoted to your understanding of some major financial principles that can have a significant impact on your success. We believe a client’s financial life is divided into two phases, an accumulation phase and a distribution phase.
During the accumulation phase, clients are building their wealth to prepare them for retirement. Key vehicles used tend to be real estate, IRAs, 401Ks, Life Insurance as well as other accounts. Key considerations during this period are taxation planning, investment rates of growth and actuarial returns.
During your distribution phase (retirement years) the most critical component turns to the rate of withdrawal from the assets you have built up. A main theory here is Monte Carlo simulation and its affects on the ability of a client to stay retired and not deplete their life savings.
Portfolio Management
A key difference between Xcel and other advisory firms is our belief in the active management of our client’s accounts. We believe that managing client’s assets should be done by mainly using individual stocks, bonds and other vehicles rather than using “passive” investments such as mutual funds or Exchange Traded Funds (ETFs). We follow stocks on a daily basis, track earnings conference calls, investor meetings and other conferences to ensure that the good reasons for owning the stock remain in place.
Retirement Planning
We look at the efficient use of all vehicles available to clients based on IRS limits, risk tolerance and other factors. Traditional IRAs, Roth IRAs, Simple IRAs, SEP IRAs and 401(k)s are reviewed to ensure we’re putting money aside in the most efficient manner allowed under current tax laws.
Protection Planning
In as much as we focus on the growing of assets, as important is the protection of those assets from litigation and unforeseen events such as a premature death or disability. Life insurance as well as disability and Long Term Care help ensure the assets get used for the purpose intended whether retirement income or legacy.
Estate Planning
As the tax laws continue to evolve over time, proper planning will help our clients ensure the most efficient and tax-favored wealth transfer across generations.
Education Planning
Among the vehicles that can be used to plan for college are savings accounts, UTMAs, Florida Pre-Paid accounts as well as 529 Plans. We work with clients to review pros and cons and make an informed decision.
Business Financial Planning
Adding some complexity to personal financial planning, developing financial plans through the business can present a daunting task. We work with clients to protect business interests via key man insurance, partner buyouts, succession planning as well as family transfers. We also work with business owners to develop fringe benefit plans such as 401k plans, Simple/SEP IRAs, golden handcuff plans and much more.
401k Plan Advisory Services
Workplace retirement plans require the owner (trustee of the plan) to make sure there is a strong team to support the ongoing regulatory and compliance environments. At Xcel, we work with business owners to start new 401k plan as well as manage/grow existing plans.
Start-Up 401ks
- Work with business owner and TPA (Third Party Administrator) to establish the plan document
- Gather pricing from multiple record-keepers to find a low cost solution for management of the plan.
- Set new enrollment meetings to work with employees on their enrollment, financial literacy and ongoing support
- Provide ongoing support to maintain and manage plan
Manage exisiting 401k plans
- Review the plan design and ensure features on the plan are up-to date such as (QDIA, Roth component language, auto-enrollment, etc.)
- Benchmark the plan in terms of pricing and ensure documentation is in place in the event of DOL audits
- Review investment choices within the plan to ensure there are ample choices. Ensure there are Target Date funds, Style funds and other options that ensure employees can invest as they see fit
- Schedule performance review days with business owners as frequently as desired to ensure employees have access to financial assistance
Important Disclosures
Relationship Summary Disclosure
