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Michael Phillips Black Wealth Management:
SMART PLANNING
SMART Planning is the use of Interactive Technology that allows both advisor and client to accumulate, track, test and measure the effectiveness of your cumulative assets to your current and future needs, wants and desires. This type of planning is interactive, meaning we allow you access various programs where you input and control the data. We work with you to set up your SMART plan and with our 30 years of financial planning experience, we help you with the planning options. Access is then available to go online and review your plans, make changes in the assumptions, which are automatically updated with current daily values, to see how markets are affecting your plans.
Michael Phillips Black Wealth Management:
SMART PLANNING
The process of the SMART Planning concept starts with AGGREGATION. Aggregation allows you from the comforts of your own home or office to discreetly input all your external account information by logging into a program that accumulates that account data, as well as combining it with the accounts you already have with our firm. You can now have one statement with all your financial information, including: bank accounts and brokerage statements, 401k and employer sponsored retirement accounts, mortgage, credit card and lines of credit balances. All these balances can be measured for performance, tax basis tracking and asset allocation. This information is aggregated together, encrypted for security, with your own login and password available to you any time of the day.
Once Aggregation is completed, the account data is uploaded into an Interactive Financial Planning program where you can input your financial needs, wants and desires. The program projects your cumulative assets (based on historical performance and risk data), and your projected utilization of those resources into the future to test the probability those assets can meet your needs, wants and desires. A probability of success is then determined so that you can measure your options, such as: timing of retirement, amount of spending, current allocations and risk. This program lets you know where you stand financially in relationship to your goals and what needs to be done to increase your chances of accomplishing them.
Since market performance is impossible to project, the planning program utilizes Monte Carlo Simulation (MCS). MCS measures the historical ranges of returns of every position in your aggregated portfolio and projects random possible returns your portfolio may encounter in the future, based on past returns. It runs 10,000 hypothetical returns, with your projected spending, to determine how many potential successes (portfolio lasting your lifetime) and failures (portfolio failing) for your projected lifetime. From this we can determine the probability of your portfolio surviving your lifetime.
These programs can be set up for you, the client, and therefore you can manipulate the data and try various “what if” scenarios (interactive) on your own. You can also access and review any “what if” scenarios performed through our firm....it’s up to you and your technical confidence. These programs are safe from outside eyes due to encryption techniques that keep your information yours. Through interactive WEBINARS, we will work with you through this SMART planning process. You can be working with us from the comfort of your home, seeing what we see online and speaking with us over the computer or telephone!
For more information, please contact us at:
MICHAEL PHILLIPS BLACKWEALTH MANAGEMENT
7520 East Second Street, Suite 7
Scottsdale, Arizona 85251
(480) 425-0154, FAX (480) 874-1558
E-mail: MPBWM@MPBlack.com
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