The Financial Planning Process
The process is simple: 1.) Gather data; 2.) Analyze the data; 3.) Develop and Present Financial Planning Recommendations; 4.) Implement Financial Plan Recommendations; and lastly, 5.) Monitor the Plan.
Data needs to be collected.
- A list of family members, their age(s), health, education, income, financial competence, and any special situations.
- The current insurance portfolio. What polices are in effect, what does your employer provide? Any Long-Term Care contracts, Life Insurance, or Disability policies in effect?
- Banking and investment information is needed. Do you have an IRA, SEP, SIMPLE, or 403(b)? Any investment accounts?
- Taxes – all income, gift, and trust returns for the last five years if available.
- Retirement and Employee Benefits – Social Security Statements, Employer-Sponsored retirement plans are all needed.
- Estate Planning – All wills, Durable Powers of Attorney for healthcare decisions, all advance medical directives and any trust documents.
- All personal financial statements if available. A list of debts and loans. If unavailable, your CPA or Financial Planner can prepare them for you.
Qualitative Goals need to be determined.
- Education Goals
- Retirement Goals
- Employment Goals
- Savings Goals
- Risk Tolerance
- Charitable Goals
- General attitude towards spending