1. Establish client and advisor relationship
In this initial step your advisor will clearly outline the services they will provide and explain both their responsibilities as an advisor and your responsibilities as the client.
2. Gathering data, including goals
In this step your advisor will gather detailed information from you about your current financial situation, you and your planner will mutually define your personal and financial goals and if relevant discuss how you feel about risk.
3. Analysing and evaluating your financial status
This step is enables the planner to assess your current financial situation and determine what you must do to achieve your goals. Depending on the level of service you require this may be a process of gathering information on your assets, liabilities, cashflow, current investments, insurance coverage and taxation strategies.
4. Developing and presenting financial recommendations and/or alternatives
This is where you will meet with the planner to go over the recommended strategy for you to achieve your specific goals. Your advisor will thoroughly explain the recommendations to ensure you fully understand the strategy, so you can make a well-informed decision on implementation of your strategy. Your advisor will listen to any of your concerns to if necessary, make any revisions.
5. Implementing the recommendations made in your strategy
This is where yourself and the planner will agree on the process of carrying out the recommended implementation schedule. You will be able to discuss how each of the recommendations will be carried out, how the progress will be measured and what assistance will be required from any other professionals such as an accountant or solicitor.
6. Monitoring the financial planning recommendations
Your advisor and you will agree on how to monitor the progress toward your goals. There will be ongoing monitoring to ensure you are on track and adjust any of the recommendations to suit any changes.
