Hi Friends!
We are so happy you are back to the Cornerstone Financial Blog. We are excited to bring our fourth blog post to you!
Financial Engineering VS. Financial Planning
By now, many of you know that what we offer at Cornerstone Financial is technically called Financial Engineering, which is quite different from Financial Planning. The main difference is that financial planning trains advisors to put together a retirement plan that will work 75 to 90% of the time. By contrast, financial engineering is designed to cover all of the bases of a comprehensive plan not just the retirement portion and to cover it so that the plan will perform properly 100% of the time as much as humanly possible.
What are some of the consequences of having a financial plan that is in only the 75 to 90% success rate? Here are some potential problems:
-Running out of money before you run out of time.
-Having to reduce your lifestyle in order to accommodate a plan that is too heavily risk oriented.
-Not having funds for a potential catastrophic loss that can cripple a retirement plan. This could be: unexpected and unfunded healthcare costs, defending a lawsuit, inadequate property and casualty insurance coverage to pay a claim.
Here is a contrast between financial engineering and financial planning:
Financial Engineering VS Financial Planning* Comparison
If you would like a no cost, no obligation critique of your current plan to see how strong it is and what your odds of success are, please let us know: (985) 626-7574.
Best regards,
Chris
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