The True Pyramid
of
Personal Financial Planning
Edwin P. Morrow, CLU, ChFC, CFP, RFC
Your
Personal-Family
Financial Pyramid
Building A Solid Future
How a qualified financial advisor will help you spend, save, invest,
insure and plan for the future - to achieve and retain independence.
Building
Speculation A Solid
Future
Appreciation
Growth and Income
Income Production
Capital Preservation
Continuous Planning Toward Achievement
Comprehensive Financial Plan Components
The Personal Financial Advisory Process
Foundation Base of Fundamental Information
Investment Attitudes Planning Assumptions
Family Data
Your Life and
Financial Goals
& Objectives
Financial Facts
Fundamental Information from Which to Plan - Foundation Level 1
Lifetime and Financial Objectives:
Retirement Income Income Tax Minimization
Lifestyle Enhancements Education Funding
Debt Management Intra-Family Support
Savings and Spending Estate Planning
Capital Accumulation Survivorship Income
Investment Management Education Funding
Benefit Plan Elections Property Ownership
Medical Coverage Casualty & Liability Ins.
Long Term Care Charitable Giving (now)
Disability Income Charitable Bequests
ANALYSIS
SERVICES
ADVICE
Collaboration
With Other
Advisors
PRODUCTS
The Personal Financial Advisory Process - Foundation Level 2
Assets &
Education Retirement Estate
Liabilities
Disability
Income Debt & Credit Survivorship
and Long
Sources
Term Care
Medical
Cash Flow
Expenses (Pre & Post Charitable
Management
Retirement)
Employee
Income Tax Investments Insurance
Benefits
Comprehensive Financial Plan Components - Foundation Level 3
Investments
e s g
ti v i n
a r Debts
r n i to
lt e Insurance on
A 20
M
Retirement
ns s
t
t io
30
c en
j e tm
10 o s
Pr dj
u
A
40
Continuous Planning Toward Goal Achievement - Foundation Level 4
Checking Savings Credit Union Short Term
Accounts Accounts Accounts Certificates
Bank Money Tax-Free Taxable Treasury
Markets Money Funds Money Funds Bills
Life Disability Homeowner
Medical
Insurance Insurance Auto, Liability
Coverage
(fixed) Insurance
Commercial Repurchase Savings Basic IRA
Paper Agreements Bonds
Capital Preservation (the Conservative Building Blocks) – Pyramid Level 1
Fixed Equity
Long-Term
Annuities Indexed
Certificates
Annuities
Guaranteed
Government Corporate
Investment
Bonds/Funds Bonds/Funds
Contracts
Deeds Profit Sharing,
Foreign
of Trust 401K, TSA, IRA
Bonds/Funds
Equity Funds
Income Production (Focus is on Income, not Growth) - Pyramid Level 2
Large Cap Mid Cap Preferred
Stocks Stocks Stocks
Indexed Real Estate
Commercial
Mutual Investment
Real Estate
Funds Trusts
Life
Annuities Residential
Insurance
(variable) Real Estate
(variable)
Income & Growth (Balanced Potential Benefits) - Pyramid Level 3
Small Cap Foreign Emerging
Stocks Stocks Markets
Your Own Other’s
Junk
Closely Held Closely Held
Bonds
Business Business
Aggressive
Low Income Managed
Growth
Housing Portfolio
Funds
Appreciation (Excellent Opportunity for Capital Growth) - Pyramid Level 4
Options Commodity Vacant
Contracts Contracts Land
Precious Gemstones Coins and
Metals And Art Stamps
Limited
Hedge Venture
Partnership
Funds Capital, IPOs
(oil, gas, etc.)
Speculation (Assets with Great Potential and Risk) - Pyramid Level 5
YOUR
ARCHITECT
TRUSTED
ADVISOR
A Trusted Financial Advisor
The Architect of Your Financial Security - Pyramid Level 6 – the Apex
