6 Steps In Financial Planning

You and your planner should:

• Mutually define your personal and financial goals, needs and priorities.

• 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
• Retirement planning
• Employee benefits
• Estate planning
• Special needs (i.e. adult dependant needs, education needs, etc.).

Develop and present the financial plan You 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 an appropriate review cycle.

You and your planner should:

• Work together to ensure that the plan meets your goals and 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 funds 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 progess 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 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.