Creating a Bulletproof Financial Plan

A common reason families and business owners avoid seeking financial advice is that they don’t know where to begin. A quick Google search brings back thousands of articles, each with contradicting opinions about where to invest, what to prioritize, and how to manage money—without knowing who you are or what you're trying to achieve. Add to that the advice from relatives at the family BBQ insisting you max out your 401(k), CPAs, attorneys, investment advisors…the list goes on.

If I were in your shoes, I’d take a step back and evaluate what you’ve built and where you want to go. Begin your financial planning journey keeping your whole life in mind. Too many people get caught up managing the immediate future and don’t plan for their long-term needs. You are your biggest asset, not your house, car, 401(k)…it’s your ability to wake up every morning, work, and be compensated.

Let’s break this down with simple math:

• Annual Income: $100,000
• Age: 35
• Years to Retirement: 30
• Annual Income Adjustment for Inflation: 3%

Under these assumptions, your income potential grows to about $4,757,541 over your working lifetime. That’s significant!

Where to Begin: Building Your Bulletproof Financial Plan

The first step in any financial plan is ensuring you and your family are protected no matter what happens. A solid plan helps you sleep better at night, knowing your goals are achievable whether you're actively working to fund them or not.

In my first post, I shared personal stories that shaped my career and perspective on financial planning. I shared how my dad suffered a near-fatal heart attack brought on by work-related stress. He didn’t have disability insurance, and if he had any life insurance, it wasn’t nearly enough. His plan wasn’t strong enough to protect him financially. Thankfully, he survived and returned to work, but that experience was a wake-up call to the importance of protection planning.

How Much Should You Allocate Toward Protection Costs?

An optimal insurance plan might require allocating 3-7% of your income. At most, insurance costs could rise 10% due to pre-existing health conditions or other factors. Let’s look at the parts of a protection plan.

Long-Term Disability Insurance

This is pure income protection for you while you're alive. While your employer may offer this as a benefit, group coverage isn’t always favorable. Consider supplementing it with an individual long-term disability insurance policy.

Group Coverage:

• Often covers 50-60% of base salary (not including bonuses or stock options)
• Coverage is typically taxable and non-portable
• Contains an “Any Occupation" clause, meaning if you can work any job – even one unrelated to your current role — you may not qualify for benefits

Individual Coverage:

• Covers up to 70-80% of your income
• The "True Own Occupation" definition allows you to claim if you can’t perform your job, even if you're working elsewhere
• Offers tax-free benefits and portable coverage

Life Insurance

When it comes to life insurance, the amount matters more than the type. Term Life Insurance is usually the most affordable option, providing substantial coverage for a relatively low cost.

For example, someone earning $100,000 annually would have roughly $4,757,541 of income potential in their lifetime. While insurance companies won’t insure your full income protection, they’ll cover up to your Human Life Value (HLV). For someone in their 20s or 30s, HLV is typically calculated as Income x 30 years. A $100,000 salary would result in around $3 million in coverage for a healthy individual, costing $400-$800 annually.

Other Considerations

Estate Planning A proper estate plan ensures your assets are distributed according to your wishes, and protects your loved ones from unnecessary stress and expenses. Seek legal advice to create a will and establish trusts, and make sure you keep your beneficiaries updated.

Liability Insurance Adequate liability coverage protects you from unexpected events like car accidents or home damage. Consider increasing deductibles on auto and home insurance to save on premiums and look into umbrella insurance for additional coverage.

Stay tuned for future insights to help you navigate your financial journey with confidence! Here’s a sneak peek at what’s coming up::

• Cash Flow Optimization: Creating more efficiencies in an individual's or family's cash flow to save more money. Saving money generates wealth.
• Capitalize on True Liquidity: Focus on where you can be saving for today’s goals, while also planning for a fruitful retirement.
• Debt Management: When and how to eliminate debt. Using debt to your advantage.
• Investments and Asset Allocation: How to think about and manage your investments as a portion of your asset allocation.
• Special Needs Financial Planning: Specific advice for families with special needs members, focusing on trusts, government benefits, and funding care for the long term.
• Business Succession Plan: How to plan for business succession or the transfer of wealth to ensure continuity and security.
• Creating a Lasting Family Legacy: Funding your trust and leveraging tools the wealthy use to create generational wealth.

Stay tuned for future insights to help you navigate your financial journey with confidence!

Exciting News: NAIFA 4 Under 40 Nomination!

I’m thrilled to announce that I’ve been nominated for the Advisor Today 4 Under 40 award by the National Association of Insurance and Financial Advisors (NAIFA). This prestigious award recognizes top young professionals in the financial services industry who demonstrate leadership, innovation, and excellence in their field.

The award ceremony took place on October 8th at Gillette Stadium during GAME DAY, where Brandon Copeland, former NE Patriots linebacker and CEO of Athletes.org, spoke about creating for education around financial planning. It’s an honor to be recognized alongside some of the brightest minds in the industry!

Thank you to everyone who has supported me along the way—I’m excited to keep pushing forward and continue making a meaningful impact on my clients and community!