6 Steps of the Financial Planning Process

1. ESTABLISHING AND DEFINING THE CLIENT-PLANNER RELATIONSHIP.

Your adviser will clearly explain or document the services to be provided to you and define both his and your responsibilities. The adviser will explain fully how he will be paid and by whom. You and the adviser should agree on how long the professional relationship should last and on how decisions will be made.

2. GATHERING CLIENT DATA, INCLUDING GOALS.

You meet with your financial adviser who will ask you many questions to get to know you and to determine your financial goals, both long and short term. Your adviser will consider your current situation – your assets and liabilities, expenses and income. Your adviser will also determine your risk tolerance, that is, how you feel about risk.

There are no right or wrong answers. Your adviser is there to learn all about you, so he can analyse your situation and determine a recommended course of action. If you have any questions or concerns, ask away. Your financial adviser is there to assist you.

At Investment Options (Aust) we ask the right questions and importantly, we listen.

3. ANALYSING AND EVALUATING YOUR FINANCIAL STATUS.

The financial adviser will analyse your information to assess your current situation and determine what you must do to meet your goals.

Depending on the services required, this could include analysing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies. We explain your options and work with you to determine the optimum strategy approach.

4. DEVELOPING AND PRESENTING FINANCIAL PLANNING RECOMMENDATIONS AND/OR ALTERNATIVES.

Your financial adviser will analyse the information you have provided in detail.

On completion of the analysis, a recommended action plan is then developed.

Depending on you and your requirements, this may involve:

  •  A written, common sense, easy-to-read report tailored for your totally individual requirements
  •  Client Education and discussions with you
  •  Identifying financial products suitable for achieving targeted wealth accumulation for both pre and post retirement   purposes
  •  Proposing options for estate planning
  •  Setting out time-frames for personal and financial goals
  •  Identifying insurance products to meet the desired level of security

Your comprehensive written Statement of Advice confirms your current circumstances and objectives; outlines the strategy; provides a step by step summary of our recommendations including specific investments, amounts and research; projects outcomes; advises on related matters; and explains fees and ongoing management arrangements.

The financial adviser will offer financial planning recommendations that address your goals, based on the information you have provided. The planner will review the recommendations with you to help you understand them in order for you to make informed decisions. The adviser will also listen to your concerns and revise the recommendations as appropriate.

5. IMPLEMENTING THE FINANCIAL PLANNING RECOMMENDATIONS.

Once you have agreed on your plan as set out in the Statement of Advice, it can then be implemented. This may involve opening an Investment Account, consolidating your superannuation accounts and applying for Risk Insurance..

We will prepare all the necessary paperwork and manage the implementation process. When necessary, we work closely with your legal and accounting advisers.

6. MONITORING THE FINANCIAL PLANNING RECOMMENDATIONS.

Financial planning is all about making sure that your current and long-term financial needs are met in the best possible way.

  • Establishing ongoing communication between client and adviser
  • Regular updating of your information, taking into account changes in lifestyle.

You and your adviser should agree on who will monitor your progress towards your goals. Because clients’ needs are constantly changing, your plan requires regular revision to remain relevant and up-to-date.

If a need to amend the plan is identified, our Planning Principles are once again set in motion.

It’s never too early or late to seek the advice of a financial planner contact Investment Options Aust today.

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