Our Comprehensive 5-Step Financial Planning Process

Towson Wealth Management has created a Comprehensive 5 Step Financial Planning Process that we follow with each of our clients. While each client’s financial plan will be different, the planning process itself is consistent.

Prior to starting our planning process we will meet with you confidentially and at no charge to discuss your current circumstances and overall financial planning needs and goals. Based on this meeting, we will quote you a fixed planning fee that will cover all meetings and conversations throughout the planning process (Steps 1-4 below). If we mutual decided to move forward with a planning engagement we will proceed in the following 5 Step process:


Gathering Data

This is the first and most comprehensive step, and also the most time-consuming step for our clients. It involves gathering important documents like your tax returns, wills, trusts, insurance policies, and investment and bank statements so you can share them with us during our initial meeting.

Also be prepared to share more subjective information with us during this meeting. This includes your financial and lifestyle goals, your level of financial risk tolerance, and your personal attitudes and experiences about finances and money.

Unless we completely understand your current and desired future financial circumstances, we cannot provide you with a sustainable financial plan. So we invest a considerable amount of time in this first step with all of our clients.


Preparing the Plan

With all of this data in hand, we will begin the work of creating a customized financial plan specifically for you. This plan will be based on your goals, your dreams, your hopes, your desires, and in the case of individuals nearing or already in retirement, how much income you can realistically generate as part of this plan. The plan will include both strategic, big-picture and tactical recommendations to guide our decision-making process on a going forward basis.


Presenting the Plan

When your personalized financial plan is complete, we will present it to you during a comprehensive one-to-one meeting. We’ll clearly explain all of the components of the plan to you in simple, understandable language, and you will have the opportunity to ask questions about anything that isn’t clear. Then you can take the plan home to review it in more detail before the next meeting, where we will answer any additional questions you have and determine priorities and next steps to take action.


Implementing the Plan

This isn’t really a step, but is more of a process. Over the course of several months, we will work together to put your personalized financial plan into action. Other professionals may be brought in during plan implementation, such as an attorney or CPA, if their expertise is need to fully implement your plan. This is a critical time because the work done during the implementation phase will provide the foundation of your financial future for many years to come.


Monitoring and Maintaining the Plan

Your personalized financial plan should be a living, breathing document that is updated and revised consistently over time as your circumstances change. We will meet with you on a periodic basis to review the major elements of the plan, its performance and make recommendations for any changes we believe would be in your best interests.