Financial Planning: Opportunity Among Crisis

The Chinese phrase for “crisis” is actually comprised of two symbols. One meaning “danger”, the other “opportunity”. This is appropriate, as a crisis usually results in a binary outcome – either danger or opportunity.

When we think of a crisis in today’s world, we could be speaking about any number of things:  International tensions, our divided nation, COVID, social unrest, rising inflation rates and fluctuating stock prices. To many of us, there seems to be an ever escalating series of crises across the spectrum.

The danger is real – life or death, safety of our property and assets, job security, etc. However, the opportunity is just as real. Those who plan and have a steady hand can weather a crisis. In fact, they can end up in a stronger position than before.

This brings us to Financial Planning. At Central Trust Company, we use Monte Carlo Simulation to model a variety of outcomes— including all the events taking place this year. Ultimately, Monte Carlo Simulation is used to model the probability of different outcomes due to the intervention of random variables.

Random variables are brought forward by historical data demonstrating variable market returns, interest rates, inflation rates and unanticipated macro-economic trends like World Wars, The Great Depression and even COVID-19. Monte Carlo Simulation then creates unique models using this historical, variable data in combination with our strategic asset allocation rates of return. This approach is proprietary, customized and fully unique to Central Trust Company. Our custom model uses this data to present predictive future outcomes in the Monte Carlo report, allowing us to provide the most relevant, customized financial plan to the clients we serve.

Our full approach to financial planning is unique. We utilize multiple meetings to:

• Establish you goals
• Gather your data
• Analyze your data
• Implement recommendations
• Review the plan on an annual basis

We use analytical tools which are highly sophisticated and can analyze a wide range of issues including retirement, estate, insurance and special needs planning. Specifically, we can evaluate your life insurance, annuities and long term care policies on a technical level that provides you with peace of mind.

Finally, if you choose, we can integrate our planning with your tax or legal professionals; or, enable a discussion with your heirs.

Contact your Central Trust Company Relationship Manager or Portfolio Manager if you are interested in getting a financial plan completed. To learn more about our Financial Planning Services, visit our Financial Planning Learning Center.