The financial planning process is a
step-by-step process or rather it should be done step-by-step for best results.
Those who don’t it methodically, they fail to plan
properly. For example, financial planning starts with clearly establishing and
defining the client and planner relationship.The financial planning company should clearly explain and document the services that it
provides to clients and should define its responsibilities during the financial
planning engagement. Payment terms should be cleared to both the parties, the
client and the service provider. Both the parties should agree on how long the
professional relationship should last and on how decisions will be made. Now,
once the contract has been signed, the financial planner should ask for
information about client’s financial situation. Client and the planner should
mutually define personal and financial goals, understand time frame for results
and discuss.
The financial planner should gather all the necessary documents before giving the advice client needs. Then comes the analysis and evaluation stage where the financial planner should analysethe client’s information to assess the client’s current situation and determine what he or she must do to meet the goals. It is then when the financial planner should offer financial planning recommendations that address client’s goals, based on the information provided. The planner should go over the recommendations with client so that client can make informed decisions. The planner should also listen to client’s concerns and revise the recommendations as appropriate.
The client and the financial expert should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as a coach, coordinating the process with client and other professionals such as attorneys, accountants or stockbrokers. And last but not the least, is the monitoring of progress towards goals. If the planner is in charge of the process, he or she should report to the client periodically and adjust the recommendations,
The financial planner should gather all the necessary documents before giving the advice client needs. Then comes the analysis and evaluation stage where the financial planner should analysethe client’s information to assess the client’s current situation and determine what he or she must do to meet the goals. It is then when the financial planner should offer financial planning recommendations that address client’s goals, based on the information provided. The planner should go over the recommendations with client so that client can make informed decisions. The planner should also listen to client’s concerns and revise the recommendations as appropriate.
The client and the financial expert should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as a coach, coordinating the process with client and other professionals such as attorneys, accountants or stockbrokers. And last but not the least, is the monitoring of progress towards goals. If the planner is in charge of the process, he or she should report to the client periodically and adjust the recommendations,