Financial Analysis

Financial analysis is used to assess an individual’s financial plan and its effectiveness. Using data-driven analysis, we conduct a review of your current financial situation. After creating your personal financial statements, we can identify and share the areas of concern or where your portfolio could be working better for you. Your individual financial statements include your assets, liabilities, and net worth. A personal cash flow financial statement details the liquidity of your assets, and a balance sheet provides a broader snapshot of your total wealth.

A personal cash flow statement measures inflows and outflows of cash during a specific period of time in order to reveal your net worth during that time period. The inflow of money can include salaries, interest earned on savings accounts, dividends from investments, and capital gains from sales of financial securities such as stocks and bonds. Basically, cash inflow is anything that brings money in. Cash outflow is any expense, no matter how big or small. It can include rent and mortgage payments, utilities, groceries, gas, and entertainment.

A personal balance sheet shows an overall view of your entire wealth picture at any given time. It provides a detailed summary of your assets, liabilities, and your net worth. Assets include liquid assets, significant assets, and investments. Liabilities include what you owe, such as bills, payments, credit card balances, and other loans. Your net worth is calculated by finding the difference between your assets and your liabilities. An individual can increase their net worth by increasing assets and decreasing liabilities. For example, purchasing a home can potentially increase your net worth. If you take out a mortgage on that home, then your assets and liabilities are increasing, but if the increase in assets is greater than the increase in liabilities, then your overall net worth increases.

Basic Types of Financial Analysis

• Performance Review – Are you getting the kind of return on your investments that you should be getting at the level of risk you are currently taking?
• Fee Review – Are the results you are receiving worth the amount you are paying in fees?
• Financial Risk Analysis – Is the risk level you are currently assuming aligned with your financial goals?

Financial Comparison Review

We offer complimentary financial comparison reviews for those who have accounts of $250,000 or more. We use the Riskalyze system to determine the level of risk you should be taking and the level of risk you are currently taking. If your risk level is not aligned with your goals and needs, then we discuss what approach should be taken to correct it.

Financial Risk Analysis

We use the system Riskalyze to complete the most effective and empowering financial comparison review. We want to empower current clients and prospects to take control of their financial portfolios through proper risk alignment. The Risk Number feature of Riskalyze removes stereotypes based on age and other arbitrary factors. After taking a detailed look at your financial risk analysis, we can show you how to maximize return and minimize risk to make the most out of your financial portfolio. Your portfolio should be working hard for you while you reap the benefits. We want you to get the most value out of your money. Call today to schedule a comparison review! Let’s create the best portfolio for your circumstances