Establish the client/planner engagement
Your planner should
- Explain issues and concepts related to the overall financial planning
process that are appropriate to you. - Explain the services they will provide, the process of planning and documentation.
You and your planner should
- Work together to ensure that the plan meets your goals objectives.
- Clarify your responsibilities as a client.
- Clarify their responsibilities as your planner. This should include a discussion about how and by whom they would be compensated.
You and your planner should
- Discuss the scope of the client/planner engagement.
- Agree on how decisions will be made.
Gather data and determine your goals and expectations
Your planner should
- Obtain information about your financial resources and obligations through interviews or questionnaires.
- Gather all the necessary documents before giving you the advice you need.
You and Your planner should
- Mutually define your personal and financial goals, needs and priorities.
- Implement your financial plan.
- Investigate your values, preferences, financial outlook and desired results as they pertain to your financial goals, needs and priorities.
Clarify your present financial status and identify any problem areas and opportunities
Your planner should
- Analyze your information to assess your current situation cash flow, net worth, tax projections, etc.
- Identify any problem areas or opportunities with respect to your: Capital needs, Risk management needs, and coverage Investments, Taxation Estate Planning, Employee benefits, Retirement planning.
- Special needs: adult dependant needs, education needs, etc.
- Clarify your responsibilities as a client.
- Clarify their responsibilities as your planner. This should include a discussion about how and by whom she be compensated.
Develop and present the financial plan
Your planner should
- Develop and prepare a financial plan tailored to meet your goals and objectives, values, temperament and risk tolerance, while providing projections and recommendations.
- Present the plan to you and establish and appropriate review cycle.
You and Your planner should
- Work together to ensure that the plan meets your goals objectives.
Implement your financial plan
Your planner should
- Assist you in implementing the recommendations discussed if you want. This may involve coordinating contacts with other professionals such as investment fund sales representatives, accountants, insurance agents and lawyers.
Monitor the financial plan
You and Your planner should
- Agree on who will monitor and evaluate whether your plan is helping you progress towards your goal.
If your planner is in charge of the process, your planner should
- Contact you to review the progress of the plan periodically and make adjustments to the recommendations required to help you progress toward your goals.
This review should include
- A discussion about changes in your personal circumstances and how they might affect your goals.
- A review and evaluation of the impact of changing tax laws and economic circumstances.
- A review of your life circumstances and an adjustment of the recommendations if needed as those circumstances change through life events such as birth, illness, marriage, retirement, etc.
