The Power of Simple in Financial Planning

Making a financial plan is complicated. There are a lot of moving parts and complexity…you could fill a book with just one plan! But often, more isn’t always better. Xavier Angel, CFP®, ChFC, CLTC and Erik Garcia, CFP®, BFA, talk about the benefits of keeping it simple. From children practicing copyright law to adults presenting too-long packets of paper to a 40 year monster of a plan, our intrepid hosts explore why simple is sometimes best. Episode Highlights: Xavier discusses the use of children on a mock jury to simplify arguments and make them more understandable, highlighting the need to keep things simple in various fields, including financial planning. (1:31) Erik mentions that human nature tends to favor complexity over simplicity, but sometimes it's important to remember that simplicity can be more efficient and productive. (4:09) Erik explains that the role of a financial planner is to help clients clarify their goals and provide simple steps to achieve them. (8:47) Xavier believes that ongoing financial planning involves financial planner and client engagement to stay updated on their life events and ensure comprehensive financial management. (11:12) Erik discusses how creating a one-page financial plan helps align your financial decisions with your values and goals, allowing you to take intentional steps toward where you want to be and remove obstacles along the way. (17:48) Erik explains that financial planning is not just about creating a plan, but also about the ongoing process of discussing and prioritizing financial decisions and effectively communicating and implementing them. (20:24) Xavier discusses the concept of simplifying news for kids and the importance of starting with simple and easy financial strategies before considering more advanced ones. (23:43) Key Quotes: “Ongoing financial planning, it's working with us, working with clients on a regular basis so that we can make sure we're keeping up with everything that occurs in your life.” - Xavier Angel, CFP®, ChFC, CLTC “You have to know where your money is and where it's going. You have to take account of your assets and your liabilities, the money in the money out of your accounts. It's not that complicated.” - Erik Garcia, CFP®, BFA “There's some very simple foundation fundamental things that we need to do first before we can layer in the more advanced, complicated strategies, we’ve got to start with the simple, we’ve got to start with the easy moving parts.” - Erik Garcia, CFP®, BFA Resources Mentioned: Erik Garcia, CFP®, BFA Xavier Angel, CFP®, ChFC, CLTC Plan Wisely Wealth Advisors