Financial Planning At Hampton Wealth Management

At Hampton Wealth Management, the Financial Planning aspect is the glue that ties everything we do together. Ideally, we would like to start off with this area to put all of your financial matters into context.

On What Differentiates Our Plan Documents

The approach we take is different from most fee-based broker firms in that we want planning to be intuitive and fun. Rather than being overly quantitative, we want to create plans that better reflect our human sentiment. This is an important breakthrough in the evolution of the financial planning process ever since Monte Carlo was first introduced in the mid-1990's. We can now calculate the trade-offs to incorporate the imprecise nature of people.

We don't like to emphasize detailed cash flow analysis until after you retire, because it is impossible to predict multiple financial factors with great precision over long periods of time. If anything, compare and contrast the "Mercedes-80s" and the "Tech-90s" to the first "Lost Decade" of the 21st century. All we know is that we have entered a "New Normal" and that taxes are going up in many categories but exactly how is a political football.

Of course, underneath all the recommendations are the detailed numbers and assumptions that we agreed upon. However, the problem with most financial plans is that they tend to be cookie-cutter and sow more confusion with all of their impressive tables and charts without the help of a planner deciphering it for you. While we can still produce the fabled 158-page report upon request, we would rather provide you with the Executive Summary and a concise Action Plan.

We want to dream about the future together and then make it happen. Some of the highest quality discussions focus more on your big picture than on your portfolio. By prioritizing your goals into Needs, Wants, and Wishes, we can map out the expenses needed for each goal based on what is Ideal and Acceptable.

There is no such thing as embarrassment, as we take it all in stride to prepare you for your goals, whether they are short-term, medium-term, or long-term in nature. We understand that every family faces different challenges, so our interest is to help you meet them to the best of our combined abilities.

The results are presented in an easy to understand format using three methods: Average Returns, Bad Timing/luck at the outset, and Monte Carlo analysis. Rather than just defining a probability of success, we lay it out in an easy to understand illustration depicting zones of confidence. If you fall short, then we can offer palatable solutions based on your pre-indicated willingness to adjust certain variables.

We even stress-test your portfolio to see how much of a Safety Margin you have to still be able to fulfill your dreams should we enter another bear market, whether it's a double dip now or years down the road. This is particularly important if you own a concentrated position of stocks.

Of course, flashes of brilliance and insight are what everybody wants to make money and to reduce risk, but ultimately the bottom line is about preparing you for tomorrow by doing it today — everyday in terms of saving your hard-earned money, maintaining your safety nets, managing your investments, and making wise tax maneuvers. The portfolio is an important vehicle, but it is only one means to an end. The more we understand the multi-faceted complexity of your life as it currently stands, the more effectively we can turn tomorrow into a reality.

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About Our Service Charges

At Hampton Wealth Management, we are a fee-based broker, so we normally charge a one-time fee for our financial planning service. As our relationship develops and we ponder the future together, we can customize multiple hypothetical scenarios to optimize your situation during our subsequent meetings — free of charge. Assuming nothing has changed, this is all included in the initial fee — certainly a value proposition.

Best of all, if you have significant assets under investment management with us, then we would be happy to provide this service to you on a complimentary basis. Financial Planning is a natural part of what we do, more so than other money managers.

As a financial planning rule of thumb, something significant (good or bad) usually happens in our lives approximately every 3 years — new family member, promotion, job loss, health problems, death in the family, etc... When material changes happen in your life, a periodic tune up may be needed. Usually one billable hour is enough, but that is really driven by your life situation.

Other financial service firms don’t charge for their financial plan, but "you don’t get something for nothing". There are two major reasons for that: either because 1) they use it as a marketing platform to sell you their wares (so caveat emptor), or 2) because they are using it as a loss leader (which we feel devalues its importance). Our plan stands on its own merit, and theoretically you can take this plan and your money elsewhere if you really wanted to. We highly recommend that you engage us in the financial planning process for both of our sakes. (And we certainly hope you find the process insightful and enjoyable enough to want to invest with us.)

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On Cutting to the Chase

Once we understand how all the moving parts fit together, then we can hone in on Investment Management or your Risk Management. However, if you wish to utilize only our money management capabilities, then we would respect your privacy and will play a niche role as your portfolio manager. A trusting relationship has to start somewhere, so the most important thing is your comfort level. Portfolio management is, after all, our bread-and-butter.

When it comes to detailed tax planning or advanced estate planning, we have a duty to consult with accountants and attorneys in their fields of expertise to complement the base upon which we build. Because we are team-oriented, we would be honored to partner with your own professionals with the goal of building and preserving your wealth. If you don't already have one, then we can refer you to other pre-screened, independent professionals for you at no additional cost. (FYI, we don't accept finder's fees for these referrals.)

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