1. Understanding the Client's Personal and Financial Circumstances

You and your planner should:

• Discuss your qualitative circumstances to include health, life expectancy, family circumstances, values, attitudes, expectations, earnings potential, risk tolerance, goals, needs, priorities, and current course of action.

• Discuss your quantitative information such as age, dependents, other professional advisors, income, expenses, cash flow, savings, assets, liabilities, available resources, liquidity, taxes, employee benefits, government benefits, insurance coverage, estate plans, education, and retirement accounts and benefits, and capacity for risk.
   

Your planner will then:

• Analyze the data and assess your personal and financial circumstances.

• Request additional information if necessary.

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2. Identifying and Selecting Goals

You and your planner should:

• Discuss your financial and personal circumstances and work towards setting specific goals. This should include prioritizing goals and a discussion of how reaching one goal may affect the ability of reaching others.

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3. Analyzing the Client's Current Course of Action and Potential Alternative Course(s) of Action

Your planner should:

• Analyze your financial data and circumstances to assess your current situation (i.e., cash flow, net worth, insurance coverage, tax projections, etc.).

• Consider and analyze alternative courses of action that may help you reach your goals.

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4. Developing Financial Planning Recommendation(s)

Your planner should:

• Develop and prepare recommendations tailored to meet your specific goals and objectives while taking into account your values, temperament, and risk tolerance.

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5. Presenting Financial Planning Recommendation(s)

You and your planner should:

• Review the plan together and establish an appropriate review cycle.

 

6. Implement your financial plan

Your planner should:

• Assist you (if this is agreed upon) in implementing the recommendations. This may involve coordinating contacts with other professionals such as investment representatives, accountants, insurance agents, and lawyers.

 

7. Monitor the financial plan

You and your planner should:

• Agree on who will monitor and evaluate whether your plan is helping you progress toward your goals.

 

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 achieve 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 adjustments to the recommendations as warranted.