Author: Matthew Little

Matthew Little, CFP®, CEPA® Featured on The Arena with Matt Boyce

Posted on by Matthew Little

Exitfour’s Principal Owner Matthew Little, CFP®, CEPA® was recently featured on an episode of The Arena with Matt Boyce, sponsored by Maximus Mortgage Advisors, to participate in the real estate discussion from the perspective of a financial advisor. 

Together, Matthew Little and Matt Boyce discuss a range of financial topics relevant to the real estate industry, including:

  • Advice for clients about to make a big financial decision or life change, such as buying their first home
  • The crucial aspects for first-time home owners to consider before buying
  • How to handle unique financial situations and navigate unexpected life events that may impact your finances
  • The benefits of consulting with a Financial Planner to navigate your financial decisions
  • And more! 

Click here to watch the full episode! Want to learn more about Matthew Little and exitfour’s CFP® professionals? Meet our team here and contact us today to start your journey!

2023 Personal Financial Planning Checklist

Posted on by Matthew Little

As we enter the second half of 2023, now is the perfect time to start thinking about your financial goals for the remainder of the year, and beyond. Whether you’re a seasoned pro or just starting, having a strong financial plan to reach your short- and long-term goals is always a good idea.

Our comprehensive financial planning checklist will guide you through the steps needed to get your finances in order for 2023. By taking the time now to plan, you’ll be in a better position to achieve your financial goals in the coming years.

Step 1: Establish Your Financial Goals

The first step in any financial planning process is establishing your goals, which will guide your financial decisions and investments throughout the year. Here are some questions to ask yourself when setting your financial goals:

  • What do I want to achieve financially in the next 6 months? 1 year? 3 years?
  • Do I want to save for a big purchase, such as a down payment on a house?
  • Do I want to pay off debt?
  • Do I want to start investing?
  • Do I want to ramp up my retirement savings?

Step 2: Create a Budget

Creating a budget is a critical step in financial planning – it should be realistic and consider all your expenses, including bills, groceries, and entertainment. Use a budgeting app or a spreadsheet to track your expenses and identify areas where you can cut back. Here are some tips for creating a budget:

  • Track your expenses for at least one month to get a good idea of where your money is going.
  • Use a budgeting app or spreadsheet to keep track of your costs.
  • Set realistic limits for each category in your budget.

Step 3: Review Your Retirement Accounts

It’s never too early to start planning for retirement. If you have a retirement account, such as a 401(k) or IRA, it’s essential to review it regularly to ensure it’s on track to meet your retirement goals. Here are some questions to ask yourself when checking your retirement accounts:

  • Am I contributing enough to my retirement account?
  • Is my asset allocation appropriate for my age and risk tolerance?
  • Am I taking advantage of any employer-matching contributions?

Review your retirement plan to ensure you’re contributing enough to reach your long-term financial and lifestyle goals. If you’re not contributing enough, consider increasing your contributions or changing your investment strategy.

Step 4: Increase Savings

Increasing your savings is essential to achieve your financial goals. Whether saving for an emergency fund, a down payment on a house, or retirement, having a savings plan in place is crucial.

Consider setting up automatic savings to make it easier to save money consistently. You can set up automatic transfers from your checking account to your savings account or use a savings app to round up your purchases and save the difference.

We also recommend looking into how much you contribute to your savings and retirement accounts. If you’re not contributing the maximum amount allowed, consider increasing it to take advantage of compound interest.

Step 5: Invest Your Money

Investing your money can help you grow your wealth over time. Consider investing in a diversified portfolio of stocks, bonds, and mutual funds. Looking to consult a professional on how to get started? Get in touch with our team of Certified Financial Planners here!

Step 6: Plan for Taxes

Tax planning is an integral part of any financial planning process. Here are some things to consider when planning for taxes:

  • Are there any tax law changes that could impact my finances in 2023?
  • Am I taking advantage of all available tax deductions and credits?
  • Should I consider consulting a tax professional?

Frequently Asked Questions

Q: Why is financial planning important?
A: Financial planning is essential to achieve your financial goals and minimize debt. It helps you evaluate your current financial situation, create a budget, set financial goals, reduce debt, and increase savings.

Q: How often should I review my financial plan?
A: You should review your financial plan at least once a year or whenever there are significant changes in your financial situation. We also recommend checking in on your progress towards your short- and long-term financial goals on a monthly or quarterly basis. This will allow you to see where there’s room for improvement or changes!

Q: What should I do if I have a limited amount of money to invest?
A: You can start small and gradually increase your investments over a period of months or years. Even small amounts can add up over time.

Q: When should I start financial planning?
A: You should start financial planning as early as possible. The earlier you start, the more time you have to achieve your financial goals.

Want to get to know exitfour’s CFP® professionals? Meet our team here and contact us today to start your journey!

What Is A Certified Exit Planning Advisor (CEPA)?

Posted on by Matthew Little

As a business owner, successfully exiting your company can feel like a daunting task – how do you ensure your business will thrive after your exit? How do you plan to reach your financial and personal goals once you leave the company?

Working with a Certified Exit Planning Advisor can help ease your transition by maximizing business value, assisting with personal financial planning, and helping you plan for life after your exit.

Table of Contents

What is a Certified Exit Planning Advisor (CEPA)?

A Certified Exit Planning Advisor® is a financial professional who advises business owners on successfully transitioning out of their business. Exit planning allows business owners to increase company value and plan for their personal future, so they can confidently transition out of their business.

There are a few different exit planning certification programs – here at exitfour, our advisors are certified through the Exit Planning Institute. The Exit Planning Institute created the CEPA® program in 2007, which requires five-plus years of experience and a five-day in-person course followed by an exam.

What are the benefits of working with a CEPA?

Business owners will see many benefits when working with a CEPA, including:

  • A strategy to increase business value before your exit
  • Clarity on your personal goals after your exit
  • The knowledge and expertise of a professional
  • Accountability to reach your short- and long-term goals for your business and personal life
  • A plan for how your business will move forward after your exit

The Exit Planning Institute states, “Through the process of Exit Planning (the Value Acceleration Methodology), owners can build more valuable companies, have stronger personal financial plans, and align their personal goals.”

How do I find a qualified Certified Exit Planning Advisor near me?

When researching Certified Exit Planning Advisors, we recommend starting with Exit Planning Institute’s public directory. Enter your location and desired services (such as ‘Certified in Financial Planning’), and EPI will provide a list of professionals.

Certified Exit Planning Advisors are often financial advisors, bankers, accountants, or legal professionals. We recommend keeping your overarching needs and goals in mind as you seek out a CEPA professional. Here at exitfour, our CEPA professionals are also Certified Financial Planners®, who can help ensure you’re on track to reaching your future goals and provide accountability for the long term.

RELATED: What Is A Certified Financial Planner (CFP)?

What should I expect once I hire a CEPA?

Once you’ve hired a qualified CEPA, they’ll start by better understanding your business’ finances, your personal finances, your timeline for exiting the company, and any personal goals or plans you hope to achieve after your exit.

A CEPA who is also a Certified Financial Planner can provide recommendations and advice on reaching your long-term financial goals, developing an investment plan, paying off debt, and more.

Want to get to know exitfour’s CEPA® professionals? Meet our team here and contact us today to start your journey!

What Is A CERTIFIED FINANCIAL PLANNER™ (CFP®)?

Posted on by Matthew Little

Are you considering working with a professional to manage your finances? We understand it’s a big step, and we’re here to help you select the right financial planner!

Table of Contents

What is a CERTIFIED FINANCIAL PLANNER™ (CFP®)?

A CERTIFIED FINANCIAL PLANNER™ is a financial professional who has passed a certification exam and a rigorous education program consisting of thousands of hours of training and experience. CFP® professionals are certified through the CFP Board, which has been the standard of excellence for financial planners for over 30 years.

The CFP Board notes, “Anyone can call themselves a financial advisor. Only those who have met the standard of excellence in financial planning can call themselves a CFP® professional.”

What are the benefits of working with a CFP®?

There are plenty of benefits to working with a CFP®, and the benefits will vary depending on your specific situation and goals. Here are a few benefits to expect when hiring a CFP®:

  • A clear plan of action to reach your big life goals
  • Clarity and a better understanding of your finances
  • The knowledge and expertise of a professional
  • Accountability to achieve short- and long-term goals
  • A renewed sense of confidence and commitment to your goals

When choosing between a general financial advisor or a CERTIFIED FINANCIAL PLANNER™, we recommend the latter. According to Forbes, “Unlike some financial advisors, all CFPs are held to a strict standard of fiduciary duty, meaning they must put your financial best interests ahead of their own. Practically speaking, this means they are barred from buying a financial product for a client simply because it pays them a high commission.”

When should I hire a CERTIFIED FINANCIAL PLANNER™?

You can consult a financial planner at any time – doing so can ensure you’re on track to reaching your future goals and provide accountability for the long term.

There are also significant points in your journey that may inspire you to reach out to a financial planner, including:

  • Planning for milestones such as buying a home, sending a child off to college, or retirement
  • A significant life change such as marital status, family size, or employment
  • A sudden increase in wealth – whether it’s expected or unexpected
  • Starting or exiting a business
  • A general sense of overwhelm around your current financial situation
  • Or a desire for a comprehensive financial strategy that aligns with your life goals

There is no right or wrong time to hire a CERTIFIED FINANCIAL PLANNER™. We recommend researching qualified CFP® professionals near you and reaching out to discuss your financial situation and goals.

How do I find a qualified CERTIFIED FINANCIAL PLANNER™ near me?

When researching financial planners, we recommend starting with the CFP Board’s ‘Find a CFP® professional’ Search. Enter your location and desired services (such as Budgeting, Business Succession Planning, or Life Transitions for example), and the CFP Board will provide a list of professionals.

Once you have a list of CFP® professionals, reach out to schedule meetings with them. Come prepared with initial questions about their services and an overview of what you hope to achieve in the short and long term. Then, move forward with a financial planner who listens to your aspirations and provides solutions to align your goals with practicality and progress!

What should I expect once I hire a CFP®?

You’ve done your research and found a qualified CFP® ready to help you reach your goals — exciting! But, what can you expect now? Typically, a CFP® will start by better understanding your current financial situation, any upcoming milestones you’re planning for, goals you’re working to achieve, and more.

A CFP® can provide recommendations and advice on long-term goals — such as retirement, exiting a business, sending children to college, or buying a home — as well as potential investments and paying off debt. Because financial planners can specialize in all different areas, make sure to share specifics of what you’re looking for and have a sense of the services you need once you choose a CFP®.

Want to get to know exitfour’s CFP® professionals? Meet our team here and contact us today to start your journey!