White Paper on Financial Planning and Wealth Management

CASE STUDY #1: Preparing a financial diagnostic for a typical household

A Practical applications using ReacfinFinancialPlanner.com

by Wim Konings, Charlotte Thomas and François Ducuroir

In this paper we present a practical application of the Reacfin Financial Planner tool which is freely available online.We consider the case of a Belgian family of 4 people (2 adults and 2 children). Both adults have comfortable income but proportionate expenditures. As they meet their Financial Advisor for the first time, they have so far placed all of their savings in cash on a standard deposit account.

We see how using Reacfin’s Financial Planner tool, the Financial Advisor can show its clients that, applying their current saving strategy they could run the risk of having to sell their house in their old days to sustain their standard of living.

We also illustrate how our tool can be used to show that an alternative investment strategy (which would include Corporate Bonds and Equities) could help limit that risk. The tool shows how risks will increase over the short term but will be compensated over longer term by the higher expected returns of the investments.