Financial Planning An Overview What is financial planning? Financial planning from church The church s goals in planning?

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Mervin Hardy
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1 Financial Planning An Overview Thank you for contacting Vineyard Columbus Fin. Min. about your personal finances. What is financial planning? Financial planning is a term that comes from the professional financial world, for people seeking assistance for things like investments, insurance, retirement and tax advice. Financial planning from church in the context of financial ministry is coaching or counsel. This planning might touch on some of the same areas that professionals do, however we often help with your questions that typical professionals do not, like giving, responsible stewarding of God s assets (Psalm 24:1), marriage and money, budgeting and excessive debt. Planning from a ministry is not professional financial planning, and is never a replacement for it. People call us with all kinds of situations, needs and concerns, so to be able to help you plan, we have compiled this questionnaire and explanation, to set expectations, and help us to understand your concerns and picture. The church s goals in planning? We want to help you with your stewardship, to be wise, have less stress, be generous, and manage money well. The coaches want to help you practically and spiritually. We take a Christ-centered approach to personal finance. This kind of coaching, can prepare you for planning with your professional advisors. Coaching you from where you are. Realizing that the financial world can be quite overwhelming, and people often have pressing needs, we want to meet you where you are. Therefore, please let us know where to begin the discussion, by checking one of the boxes below: 1. Single needs: I have one or a few specific concerns to cover in one meeting 2. Many needs: I have many questions and areas to discuss, may need a few meetings 3. Checkup: I am doing well with my finances and understand stewardship, however I have a few areas I would like to discuss 4. Crisis: My finances are in crisis or very stressful. I may be depending upon debt or assistance from others or government, and want a plan to financial health 5. Abundance discussion: I have more than enough assets or income, but would like to discuss good stewardship, giving or and spiritual issues 6. Marriage and money: Money is a big contributor to the health of our marriage, and we are seeking counsel to help us resolve issues and work together To request financial planning/coaching: please complete some of the pages, as indicated and fax them to or to Kent.Irwin@vineyardcolumbus.org 1

2 Memo of Understanding This is the agreement if you want to receive coaching or planning from Vineyard Columbus. Please review and sign if you agree. You 1. You are responsible for your own decisions, and not the church or coach. 2. Commit to completing your assignment before each meeting. ` 3. Reschedule the appointment if you have a conflict or didn t complete homework 4. Are open to self-evaluation, change, and will not be defensive. 5. Commit to do the hard work and completing this process. 6. Agree by signing below that you understand our approach and accept the disclaimer. We commit to provide 1. Coaching, but the church or coach is not your professional financial advisor. 2. Balanced grace and discipline; compassion, accountability, and discipleship. 3. Practical and spiritual financial coaching. 4. Confidentiality: your coach or small group will keep your information private. 5. No Sales: your coach or members of your small group will not sell you anything. I m engaging in a financial small group, financial class, or coaching, which is a nonprofessional financial ministry and program of (church). I understand that the financial instruction received (a) will be provided by either a paid staff member or volunteer who has been trained to serve in the ministry or program, but who is not otherwise trained, licensed, or in any way formally qualified or authorized as a financial planner, investment advisor, accountant, or lawyer, and (b) will offer neither legal, tax, investment, nor professional financial advice. In consideration of this being provided to me by, I (for myself and my heirs, assigns, representatives, and other successors-in-interest (collectively, the Releasors ) hereby waive and release (church), the author, respective directors, officers, employees, volunteers, and agents from all liability for any injury, damage, or loss incurred or suffered by any Releasor resulting directly or indirectly from the Services. Signatures Client: Date: Coach: Date: If you are requesting financial coaching, you are to be commended for following biblical counsel. Plans fail for lack of counsel, but with many advisers they succeed (Proverbs 15:22). 2

3 Basic Information Your Name Cell Phone Age: Employer: Occupation: Hourly? Hours per week: Single Engaged Married Separated Widowed Spouse Name Cell Phone Age: Employer: Occupation: Hourly? Hours per week: Times I or we can meet? Morning Afternoon Early Eve Weekends Church Information Member Attendee Small Group Volunteer other Where you referred to us by someone, if so, who and why? Ages of your children Expected changes X Comment Do you plan to move in the near future?... Do you plan to change occupations soon?... Are you planning to have children or change marital status?... Do you plan to seek additional education?... Do you expect any other changes that may impact you financially?.. Present financial situation 1 Surplus: Income exceeds expenses e.g., good savings, low debt, living off of assets 2 Solid: Income exceeds expenses e.g., good savings/investments, no/low debt 3 Stable: Income exceeds expenses e.g., okay investments, maybe high debt 4 Marginal: Expenses near exceed income e.g., may have some savings and high debt 5 Struggling: Expenses exceeding earned e.g., depleting reserves, and may have high debt 6 Crisis: No income/expenses far above income e.g., high debt X Things to bring, discuss and goals If you have a questions about specific items, please bring any detailed documents that may be helpful to the appointment, such as credit report if questions about debt, or mortgage statement if home loan questions. Please come prepared with pen and paper, to take notes, including your next steps following the meeting. Why do you want to meet, what are your goals, what do you need help with? Please take time to describe. It is important that you think and pray about this, and be very brief and specific. If no precise meeting goals or maybe feeling led to meet with a pastor to discuss finances, please describe. 3

4 Current Challenges Lost employment Debt or behind on mortgage payments Self-employed business not doing well Resolve issues of money and faith Spouses not seeing eye-to-eye about money Disability or health issues Financial stress, no plan, making little progress Doing well, but want coaching about good stewardship Debt Information (if seeking coaching about your debt) Creditors are now calling/mailing me Checking account overdraw charges Collectors/attorneys calling/mailing Have declared bankruptcy or considered it I ve sought assistance from a Credit Co. I ve contacted creditors Behind on mortgage payments If yes, indicate year, type, and if discharged?..or just ignoring them all together? Talked to my lender, housing agency, doing loan mod. Recent things I ve done to improve my financial condition Education, change, management Yes? X Increased cash flow Yes? X Studied financial issues on my own Refinanced Home, lowered real estate tax Talked to a career specialist Changed tax withholding at work Taken financial or career courses Shopped lower insurance rates Sought counsel from financial advisors Deferred or consolidated loans (circle) Some attempt to create a budget Used 401(k) funds or Decreased 401(k) (circle) Accumulated more savings or investment Became more frugal, cut back on cell or cable Debt has gone down Downsized home or auto Sold assets or personal property Obtained a better job Increased or decreased giving (circle) Obtained second job or overtime My personal finance skills and habits. My spouse or I Pay bills online Use computerized budgeting software Can use Spreadsheet software Dedicate time each week to pay bills Have Financial/Legal/Tax etc. advisors Do it myself investing or reg. financial planning Quicken, Mint.com e.g., Excel If married, indicate who pays Assignments based on the coaching you are seeking 1. Single needs coaching: please provide your questions If involving cash flow or debt please complete all pages 2. Big picture coaching or financial discipleship: Your work is done, please ignore the following pages 3. Checkup coaching: Please complete the following pages as they apply 4. Crisis financial coaching: Please complete all of the following pages 5. Abundance discussion Your work is done, please ignore the following pages 6. Not sure, I just want to meet with someone to talk Please complete the following pages if they apply 4

5 Assets Tax info Yes No Comment Are all federal, state, local & business taxes filed and paid? owe? Are there any outstanding tax issues? Self-employed are you paying the quarterly estimate? Has your home been re-appraised for real estate taxes? Yearly Information: This may need to be incorporated into Tax expenses as an adjustment Tax Year Federal State City Local Tax Refunds You Received or Owed to you Current Prior Taxes You Owe You had to pay or will pay Current Prior Asset Information (this is not your budget) 1. HOUSING M. Payment $ Value Debt Owed Months Left % rate Mortgage Principle & Interest Only Home Mortgage Escrow Second Mortgage Home/Renters Ins if non-escrow Real estate tax if non-escrow 2. FIXTURES AND FITTINGS M. Payment $ Value Debt Owed Months Left % rate Furniture payment Payments for appliances or other 3. TRANSPORTATION M. Payment $ Value Debt Owed Months Left % rate Automobile 1: Loan or Lease Automobile 2: Loan or Lease Boats, Motorcycles, Rec Vehicles 4. LIFE INSURANCE cash value not death benefit M. Payment $ Value Debt Owed Months Left % rate Life insurance, his combined Life Insurance, her combined 5. Savings and Investments M. Payment $ Value Debt Owed Months Left % rate Checking Savings, CDs, Money Market Health Savings Accounts "HSA" Regular: non payroll-deducted 5

6 IV. INCOME AND EXPENSES - The Mint.com Designer For Excel version see Mint Designer at financial ministry This is the exact order that you will see listed in Mint.com 1. Auto Transport MONTHLY Estimated Auto Insurance Auto Payment Gasoline and Fuel Parking Public Transportation Service and Parts Add/Edit Categories: Enter Taxi Fare Add/Edit Categories: Annual Registration Add/Edit Categories: Other such as tolls 2. Bills and Utilities - MONTHLY Estimated Home Phone Internet Mobile Phone Television (or combined w/internet & TV) Utilities: combined gas/oil heat, electric, water, sewer/trash, or list separately Add/Edit Categories: Electric, if you want Add/Edit Categories: Water, if you want Add/Edit Categories: Sewer/trash if listed Add/Edit Categories: Home Gas/Oil 3. Business Services Estimated Advertising Legal Office Supplies Printing Shipping Add/Edit Categories: e.g., bus. ins, dues 6

7 4. Education - MONTHLY Estimated Books and Supplies Student Loan Tuition 5. Entertainment - MONTHLY Estimated Amusements Arts Movies and DVDs Music Newspapers and Magazines Add/Edit Categories: Video Games Add/Edit Categories: Sporting Events Add/Edit Categories: Tobacco, other? 6. Fees and Charges MONTHLY Estimated ATM Fee Bank Fee Finance Charge Late Fee Service Fee Trade Commissions 7. Financial - MONTHLY Estimated Financial Advisor Life Insurance Add/Edit Categories: e.g., Life Ins. Add/Edit Categories: e.g., Umbrella Ins. Add/Edit Categories: e.g., Disability Ins. Add/Edit Cat.: e.g., Long Term Care Ins Add/Edit Cat.: e.g., software, TurboTax Add/Edit Cat.: e.g., Accountant, tax fee 7

8 8. Food and Dining MONTHLY Estimated Alcohol and Bars Coffee Shops Fast Food Groceries Restaurants 9. Gifts and Donations MONTHLY Estimated Charity Gift Add/Edit Categories: TITHE (be sure to add this)) 10. Health and Fitness MONTHLY Estimated Dentist Doctor (MD, DO, Chiropractor, Counselor) Eye care Gym Health Insurance Pharmacy Sports Add/Edit Categories: e.g., OTC counter meds, vit. 11. Home MONTHLY Estimated Home Furnishings Home Improvement Home Insurance Home Service Home Supplies Lawn and Garden Mortgage or Rent Add/Edit Categories: condo or homeowner's dues Add/Edit Categories: Security System Add/Edit Categories: storage unit or other 8

9 12. Income: Monthly Total Net, after tax Estimated Bonus Interest Income Paycheck (for couples tis can be the entire take home paycheck amounts Reimbursement Rental Income Returned Purchase Add/Edit Categories: Social Security or Pension Add/Edit Categories: Unemployment Compensation Add/Edit Categories: Commissions or self-employment income If not listed above Add/Edit Categories: Child Support or Alimony you recieve 13. Investments NOT PAYROLL DED.. Estimated Add/Edit Categories: retirement deposits Add/Edit Categories: savings account deposits Add/Edit Categories: future college expenses 14. Kids Monthly Estimated Allowance Baby Supplies Babysitter and Day Care Child support Kids Activities Toys Add/Edit Categories: e.g., lessons, school fees 15. Miscellaneous Monthly Estimated Postage ` 9

10 16. Personal Care Monthly Estimated Hair combined for family Laundry (dry cleaners and laundromat Spa and Massage 17. Pets Monthly Estimated Pet food and supplies from pet store Pet Grooming Veterinary 18. Shopping Monthly Estimated Books Clothing Electronics and Hardware Hobbies Sporting Goods 19. Taxes Monthly Do not enter any figures here, if they are auto-deducted already from your paycheck Federal Local Property Sales State Estimated 10

11 20. Transfer - Monthly Do not include car or 1 st mortgage loan here, but see debt page and include details here Credit Card Payment Transfer for cash spending Estimated 21. Travel Estimated Air Hotel Add/Edit Categories: e.g., car rental 22. Uncategorized Estimated Cash and ATM Check His and Hers mad money INCOME VERSUS EXPENSES A. Total Net Spendable Income (all sources) see number 12 B. Total All Expenses add 1,2,3 22 C. Deficit (spending exceeds income) A. B. = C if negative D. Surplus (income exceeds spending) A. B. = C if positive Surplus or deficit calculation 11

Monthly Expenses Worksheet

Monthly Expenses Worksheet Education Rent or mortgage $ Tuition $ Heating (gas or oil) $ Books, papers and supplies $ Electricity $ Newspapers and magazines $ Water or sewage $ Lessons (sports, dance,