Step 1 - Explain:
Step 2 - Gather:
- Topics and concepts related to financial planning.
- Services the advisor will provide and the process of planning and documentation.
- The responsibilities of your advisor.
- The responsibilities as a client.
- Discuss the scope of the client/advisor engagement.
Step 3 - Clarify:
- Information about your financial resources and obligations through interviews or questionnaires.
- Defined personal and financial goals, needs and priorities.
- Investigate values, preferences, financial outlook and desired results.
Step 4 – Developing and preparing a financial plan:
- Present financial status and identify challenges and opportunities
- Analyze information to assess your current situation (cash flow, net worth, tax projections, etc.).
- Identify problem areas or opportunities with respect to your:
- Risk management needs and coverage
- Retirement planning
- Employee benefits
- Special needs (i.e. adult dependent needs, education needs).
- Tailored to meet your goals and objectives, values and risk tolerance, while providing projections and recommendations.
- Your advisor will present the plan and establish an appropriate review cycle with periodic assessment.
Working together will ensure that the plan meets your goals and objectives.
Step 5 - Implementing
Step 6 - Monitoring
- Applying the agreed to recommendations. This may involve coordinating contacts with other professionals such as accountants, insurance representatives and lawyers.
- Consistently evaluate your plan to ensure you are progressing towards reaching your financial goals.
- Your advisor will contact you periodically to review the plan, make adjustments , recommendations, if required, to help you progress toward your goals; this review should include:
- Evaluate the impact of changing tax laws, economic circumstances and fluctuating markets.
- Discussion about changes in your life circumstances, birth, illness, unemployment, marriage, retirement.