6 Steps in Financial Planning

Step 1  - Explain:

• 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 2  -  Gather:

• 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 3 -  Clarify:

• 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
  • Investments
  • Taxation
  • Retirement planning
  • Employee benefits
  • Special needs (i.e. adult dependent needs, education needs). 

Step 4 – Developing and preparing a financial plan:

• 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

• Applying the agreed to recommendations.  This may involve coordinating contacts with other professionals such as accountants, insurance representatives and lawyers. 

Step 6  - Monitoring 

• 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.