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Wealth ManagementIntermediate

Wealth Management Financial Plan Builder

Build or update comprehensive financial plans covering retirement projections, education funding, estate planning, cash flow analysis, and scenario modeling.

5 minutes
By anthropicSource
#wealth management#financial planning#retirement#estate planning#cash flow

Building a comprehensive financial plan means juggling retirement projections, education funding, estate planning, tax optimization, and insurance analysis -- and a plan that only works in the base case gives clients false confidence when life throws curveballs.

Who it's for: wealth managers, financial advisors, private bankers, family office managers

Example

"Build a financial plan for the Patel family -- both age 45, two kids, targeting retirement at 62" → 20-page plan with cash flow projections, Monte Carlo retirement analysis, 529 funding schedule, estate tax exposure summary, insurance gap analysis, and six stress-test scenarios

CLAUDE.md Template

New here? 3-minute setup guide → | Already set up? Copy the template below.

# Financial Plan

description: Build or update a comprehensive financial plan covering retirement projections, education funding, estate planning, and cash flow analysis. Use for new client onboarding, annual plan reviews, or scenario modeling. Triggers on "financial plan", "retirement plan", "can I retire", "education funding", "estate plan", "cash flow analysis", or "plan update".

## Workflow

### Step 1: Client Profile

Gather or confirm:
- **Demographics**: Age, spouse age, dependents, life expectancy assumptions
- **Employment**: Current income, expected raises, retirement age target
- **Accounts**: All investment accounts with balances and asset allocation
- **Income sources**: Salary, bonuses, rental income, Social Security estimates, pensions
- **Expenses**: Current annual spending, expected changes (mortgage payoff, kids' independence)
- **Liabilities**: Mortgage, student loans, other debt
- **Insurance**: Life, disability, LTC, health
- **Estate**: Wills, trusts, beneficiary designations, gifting strategy

### Step 2: Cash Flow Analysis

Build annual cash flow projections:

| Year | Age | Gross Income | Taxes | Living Expenses | Savings | Net Cash Flow |
|------|-----|-------------|-------|-----------------|---------|--------------|
| | | | | | | |

Key inputs:
- Inflation rate assumption (typically 2.5-3%)
- Tax rate (marginal and effective)
- Savings rate and where savings are directed (pre-tax, Roth, taxable)

### Step 3: Retirement Projections

**Accumulation Phase:**
- Current portfolio value
- Annual contributions (401k, IRA, taxable)
- Expected return by asset class
- Monte Carlo simulation: probability of success at various spending levels

**Distribution Phase:**
- Required annual spending in retirement (today's dollars → inflation-adjusted)
- Social Security start age and benefit
- Pension income (if any)
- Portfolio withdrawal rate and sequence
- Required Minimum Distributions (RMDs)

**Key Output:**
- Projected portfolio value at retirement
- Sustainable withdrawal rate
- Probability of not running out of money (target >85%)
- "What if" scenarios: retire early, market downturn, higher spending

### Step 4: Goal-Specific Analysis

#### Education Funding
- Children's ages and target college start
- Current 529 balances
- Target funding level (public vs. private, 4-year vs. graduate)
- Required monthly savings to reach goal
- Financial aid considerations

#### Estate Planning
- Current estate value and projected growth
- Estate tax exposure (federal and state)
- Trust structures in place
- Gifting strategy (annual exclusion, lifetime exemption usage)
- Charitable giving plans
- Beneficiary review

#### Risk Management
- Life insurance needs analysis (income replacement, debt payoff, education funding)
- Disability insurance adequacy
- Long-term care planning
- Umbrella liability coverage

### Step 5: Scenario Modeling

Run key scenarios:

| Scenario | Probability of Success | Portfolio at 90 | Notes |
|----------|----------------------|-----------------|-------|
| Base case | | | |
| Retire 2 years early | | | |
| 20% market drop in Year 1 | | | |
| Higher spending (+20%) | | | |
| One spouse lives to 95 | | | |
| Long-term care event | | | |

### Step 6: Recommendations

Prioritized action items:
1. Savings rate changes
2. Asset allocation adjustments
3. Tax optimization (Roth conversions, tax-loss harvesting, asset location)
4. Insurance gaps to fill
5. Estate document updates
6. Beneficiary designation review

### Step 7: Output

- Financial plan document (Word/PDF, 15-25 pages)
- Cash flow projection spreadsheet (Excel)
- Retirement projection charts
- Goal funding analysis
- Scenario comparison table
- Action item checklist

## Important Notes

- Financial plans are living documents — review and update annually or after major life events
- Be conservative with return assumptions — overestimating returns gives false confidence
- Tax planning is as important as investment returns — model tax implications of every recommendation
- Social Security timing is a major lever — model start ages of 62, 67, and 70
- Always stress-test the plan — a plan that only works in the base case isn't a good plan
- Compliance: ensure recommendations align with suitability/fiduciary standards
README.md

What This Does

This playbook builds or updates comprehensive financial plans covering all major planning areas: cash flow analysis, retirement projections with Monte Carlo simulations, education funding, estate planning, risk management, and scenario modeling. It produces structured output suitable for new client onboarding, annual plan reviews, or "what if" analysis.

Important: This workflow assists with financial plan development but does not provide financial advice. All plans should be reviewed by qualified financial professionals before presenting to clients.


Quick Start

Step 1: Create a Project Folder

mkdir -p ~/Documents/FinancialPlans

Step 2: Download the Template

Click Download above, then move the file into your project folder as CLAUDE.md.

mv ~/Downloads/wm-financial-plan.md ~/Documents/FinancialPlans/CLAUDE.md

Step 3: Start Working

cd ~/Documents/FinancialPlans
claude

Try these prompts:

"Build a retirement plan for a couple age 55 targeting retirement at 65"
"Can the Johnsons retire two years early if they reduce spending by 15%?"
"Create a 529 funding analysis for three children ages 2, 5, and 8"

Plan Coverage Areas

Cash Flow Analysis

Annual projections of income, taxes, expenses, and savings with inflation adjustments. Models where savings are directed (pre-tax, Roth, taxable).

Retirement Projections

Accumulation and distribution phase modeling, including Monte Carlo simulations targeting >85% probability of success. Covers Social Security timing (ages 62, 67, 70), RMDs, and sustainable withdrawal rates.

Education Funding

529 balance tracking, target funding levels (public vs. private), required monthly savings, and financial aid considerations.

Estate Planning

Estate value projections, tax exposure (federal and state), trust structures, gifting strategy, charitable plans, and beneficiary review.

Risk Management

Life insurance needs analysis, disability coverage adequacy, long-term care planning, and umbrella liability.


Scenario Modeling

The plan includes stress-testing across key scenarios:

  • Base case -- Current trajectory
  • Early retirement -- Retire 2 years early
  • Market downturn -- 20% drop in Year 1
  • Higher spending -- 20% increase in annual expenses
  • Longevity risk -- One spouse lives to 95
  • Long-term care event -- Extended care costs

Best Practices

  • Living document: Review and update annually or after major life events (job change, inheritance, health event)
  • Conservative assumptions: Overestimating returns gives false confidence -- be realistic
  • Tax planning matters: Model tax implications of every recommendation; tax savings can rival investment returns
  • Social Security timing: This is one of the biggest levers -- always model multiple start ages
  • Stress-test everything: A plan that only works in the base case is not a good plan
  • Compliance: Ensure recommendations align with suitability and fiduciary standards

Example Prompts

"Build a financial plan for new clients -- married couple, age 50, $2M portfolio"
"Update the retirement projection assuming a 20% market correction in year one"
"Model Roth conversion strategies for a client in a low-income bridge year"
"What happens to the plan if we fund private college for all three kids?"

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