"REAL" Financial Planning
Comprehensive REAL Financial Planning steps:
Step 1: Identify and Establish financial goals and objectives
Step 2: Gather data and inventory client information
Step 3: Process and analyze the client’s financial condition and available options
Step 4: Formulate strategies / development of a wealth management tracking system
Step 5: Development of the client’s “Wealth Management Team”
-----Steps 1 - 5 are included in fee-based planning ----Steps 6 and 7 are optional and flexible
Step 6: Implement the recommendations and establish a review and monitoring strategy
Step 7: Review and monitor the financial plan (“Wealth Management”)
What areas does the financial planning process address?
Determining Goals and Expectations Cash Management
Advisor / Client relationship Expense and Income Tracking
Goal prioritizing Budget Analysis
Expectation Management Cash Flow Statement
Retirement Strategies Cash Instrument Vehicles
Retirement projections Estate Planning
Tax planning strategies Estate Planning goals
Employer retirement plan analysis Wills
Time frame and time-line development Trusts
Pension Analysis Gifting
Social Security Charitable Intentions
Income needs analysis Passing of Estate
Insurance Analysis Education Planning
Health Insurance Saving for minor children
Disability Insurance Financial Aid analysis
Life Insurance Tax and Asset Arrangement
Auto / Home Insurance Education savings projections
Long Term Care Insurance Credit and Debt Management
Liability Insurance Mortgage analysis
Inheritance Planning Unsecured debt
Asset Allocation 2nd Home / Cabin Purchases
Risk Tolerance analysis Auto (toy) purchasing
Strategic Asset Allocation School Loan analysis
Modern Portfolio Theory Future debt preparation
Efficient Frontier analysis Employee Benefits Analysis
Portfolio Hedging Retirement Plans
Investment Analysis Pensions
Determine asset allocation for various goals Flex Plans
Benchmark setting Group Insurances
Manager performance analysis Deferred Compensations Plans
Risk Management Tax Planning Strategies
Portfolio Holdings Analysis Proper use of tax incetives
Specialty Planning / Services Future Tax planning
Rental Property Analysis / Planning Coordination with tax advisors
Tuition Planning Strategies Wealth Management Team
Coordination with specialty advisors Attorneys
Real Estate and Non-traditional investing CPA / Accountants
Business to Personal planning Mortgage Brokers
Legacy Planning Property and Casualty Agents
Small business planning Real Estate Broker/Agents
Bankers
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