The Four Elements of a Strong Financial Plan with Travis Gatzemeier

Today’s episode of "Keep What You Earn” features Travis Gatzemeier, a certified financial planner who specializes in assisting entrepreneurs and equity compensated professionals. During our conversation, Gatzemeier shares his expertise on constructing comprehensive financial and investment plans to achieve financial independence and security.

Travis breaks down the idea of financial planning into four manageable segments: cash flow plan, investment plan, tax plan, and risk plan. When intertwined, they provide a well-rounded financial blueprint engineered towards achieving unique, personal, and future-facing financial goals. However, it's vital for this plan to remain adaptable, adjusting when your goals shift over time, as change is inevitable.

**The cash flow plan** is the foundation for all the elements of a robust financial strategy. It zooms in on the individual's income streams and expenses. Travis emphasizes that a breakthrough in financial planning is transitioning from your active income to wealth generated from investments. A good cash flow plan should also cater to short-term, midterm, and long-term cash funding needs such as buying a house or funding education.

**An investment plan**, which Travis sketches out vividly, should not only satisfactorily cater to short-term cash needs but should also focus keenly on long-term independence from your business. Expanding your investment portfolio outside of your business can aid in establishing a future wealth baseline. Many investors make the common mistake of aimless planning and investing without a clear goal, Travis warns. He encourages having a specific objective and a purpose for your investments and supports the mix of retirement accounts, brokerage accounts, and Roths.

The third element, **a considerate tax plan**, should be designed to consider the overall tax picture and to optimize lifetime taxes. Travis identifies tax diversification as fundamental as asset diversification and warns against basing decisions solely on tax considerations. Instead, prioritize an overall plan and optimize taxes as necessary. He stresses diversifying between Roth (after-tax) and pre-tax accounts to provide financial planning flexibility and a shield against uncertainty.

Lastly, **the risk plan** often is the most overlooked aspect of a strong financial plan. Travis elucidates the true significance of risk protection strategies, including life insurance, disability insurance, and liability coverage. He says protection plans become increasingly important as you accumulate wealth, but many people mistakenly believe that they don't have enough to protect.

In the podcast, it's clear that the financial planning journey is personal and requires you to understand your resources entirely, make trade-offs with your goals, and determine financing priorities. Travis cites the abundance of potentially misleading financial advice in the public sphere such as TikTok, encouraging investors to get help from a professional financial planner to navigate the vast information landscape.

To round up, Travis Gatzemeier encourages investors to find a fee-only – meaning they're compensated only by their clients, not through commissions or partnerships – financial planning firm to ensure the advice received is client-centered, without conflicts of interest.

To get in touch with Travis, check him out at Kinetics Financial Planning; he offers strategy sessions and welcomes collaborative opportunities. Prefer your information digital and direct? He also manages an informative Twitter and newsletter.

Are you an entrepreneur seeking your financial plan's perfect accountant? Our host, Shannon Weinstein, provides a free guide named Money Pro Matchmaker.

Remember, financial planning is much more than just investing; it’s about understanding your financial situation, your goals, and making informed decisions. More importantly, it’s about keeping what you earn.

Connect with Travis: 

Twitter: https://twitter.com/T_Gatzemeier

LinkedIn: https://www.linkedin.com/in/travisgatzemeier/

Instagram: https://www.instagram.com/kinetixfp/

Website: https://www.kinetixfp.com/

Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/ 

Want to learn more so you can earn more?

Download the Money Pro Matchmaker tool here

Visit keepwhatyouearn.com to dive deeper on our episodes

Visit keepwhatyouearncfo.com to work with Shannon and her team

Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ

The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.