PERSONAL FINANCIAL PLANS

Personal financial planning is the joint analysis of all the financial aspects of the person to develop a plan that leads to the achievement of all personal goals.

Many people think that financial planning is only for managing assets and protecting the assets of high-income individuals. However, personal financial planning is a topic that should be of most concern to individuals with lower incomes because for them, the value of each dollar spent is much more important.

The changes seen in the society of the United States in the last decades, have made the administration of personal finances become an increasingly complex issue. The general trend of change is that the responsibility in making decisions about the personal financial future is increasingly in the hands of the same individuals and not of the companies or the government.

With so many changes, new regulations and more responsibility of everyone, it is necessary that the resident of this country should be literate in basic finance, law and tax issues, to manage their personal finances. It can be grouped in a very simple way into seven variables that every personal financial plan should consider:

1. Income protection and risk management: It is the issue related to the different types of insurance. In financial planning the biggest mistake is not to protect the most valuable financial asset that an individual could have: His ability to generate income. In this regard, it is recommended that everyone have a reserve fund equivalent to three to six months of family expenses. It is also recommended to have and review annually the insurance policies of: Life, health, disability, automobile and home.
2. Debt and credit: The strongest chain that prevents us from progressing financially are the debts. There are different ways to solve the problem of debts, among which we find: Debt consolidation: Consists of pre-negotiated agreements with credit card companies, in which the interest rate is reduced in order to reduce payments monthly and shorten the time of payment of the debt. A single payment is made to a consolidation agency that is responsible for distributing the payments among the creditors:
   
   • Negotiation: It is done when the accounts are already overdue or in collection. The objective is to negotiate the reduction of a significant percentage of the debt (50% or more). The negotiation must be done whenever the client has the money to cancel it in cash, since otherwise the credit will be negatively affected.
   • Bankruptcy: It is a legal protection that the debtors have before their creditors. In bankruptcy all debts are eliminated, and the debtor can keep their personal belongings as house and car, as long as they do not exceed the values established by law. Bankruptcy is the last option debtors have, but in most cases is the best solution for debtors who have tried unsuccessfully to eliminate their obligations.
3. Administration and investments in real estate: The purchase of a house is the cornerstone where the financial and emotional well-being of a family is built. Likewise, the purchase of a house is the investment that offers the greatest amount of tax benefits for the average citizen. Buying a home can be the biggest investment decision and the longest financial commitment a person can make. It can also be the main asset that supports our financial position.
4. Saving for higher education: The dream of every parent is to be able to provide higher education to their children. Education is a primary factor in improving income generation capacity and is a fundamental factor for competitiveness in a globalized world. There are plans like the 529 that allow parents to save for their children's college without having to pay income taxes.
5. Investment and capital accumulation: We are fortunate that in the United States is the largest and most dynamic capital market in the world freely accessible to the regular individual. That's why it makes sense to have a healthy investment plan that helps us achieve our financial goals.
6. Planning for retirement: Prepare to ensure financial independence at a stage of life in which our ability to generate income is very limited. With the recent changes in the social security system, this responsibility falls on us today. All people in this country must have an Individual Retirement Account (IRA) or their 401 (k) retirement plan, to save for their tax-free retirement and legally protected against their creditors.
7. Estate planning: How to make property transfers to our loved ones, minimizing transfer costs and taxes. Topics such as the transfer of family property to our children and the creation of trusts to protect family assets are some of the topics of estate planning.

COMPANY FINANCIAL PLANS

The business plan is the navigation chart of an entrepreneur and it is also constituted in the company's presentation letter to banks and investors.

It sets out the general purpose of a company, and market, technical, financial and organizational studies, including topics such as marketing channels, price, distribution, business model, engineering, location, Organizational chart of the organization, the capital structure, the financial evaluation, the sources of financing, the necessary personnel along with its method of selection, the philosophy of the company, the legal aspects, and its exit plan.

It is usually formulated by businessmen, managers, or by someone who wants to start a business for the administration and planning of the company and convince banks or potential investors to contribute financing to the business.

It is generally considered that a business plan is a living document, in the sense that it must be constantly updated to reflect changes not previously planned.

The main applications that a Business Plan presents are the following:

• It is a very useful tool for the promoter’s team itself, since it allows detecting errors and properly planning the start-up of the business prior to the start of the investment.
• It facilitates the obtaining of bank financing, since it contains the forecast of economic and financial status of the business and adequately informs about its viability and solvency.
• It can facilitate negotiation with suppliers.
• Attracting new partners or collaborators.

The business plan must be prepared or reviewed by specialists in the financial and business area so that they can give the entrepreneur the necessary tools for decision-making, as well as to investors and banks, the financial figures of the business to be profitable for them to finance said project. It must be presented in a simple technical language, so that it can be easily evaluated by investors. It must also be easy to understand so that the employer can compare the performance of their business with the goals proposed in the plan. Finally, it must be realistic enough so that neither the entrepreneur's resources nor the bank's resources are expecting false expectations with the proposal.

Trusts and wills

Testament – If you die without a will, the state where you live determines what will happen to your property. You would like the state or yourself to determine how your assets will be shared. Call for more information about a will.

Trust - A Trust is a legal entity that functions as a corporation. This vehicle can help you leave your assets to your loved ones without the need to go to court and with a person in charge of monitoring how everything is distributed. It is very important when you leave goods to minors or people with special needs. Call for more information about a Trust.

Change of title of property (Quit Claim Deed)

You can change your property in the name of a relative as a gift, in divorces, or if you want to change your property in the name of a business. You can also eliminate problems that appear in a title with this change. Call for more information about a Change of title of properties (Quit Claim Deed).