Financial Planning.

Financial Planning Process
Know Where You Stand
Having a clear picture of your current financial situation is one of the first steps in creating a financial plan. Personal Data Organization will help you take a snapshot of your current financial situation, give you a sense of the types of questions a financial planner will ask, and prepare you for your first meeting with a CERTIFIED FINANCIAL PLANNER™ professional.

Get Organized
When you meet with a financial planner, they will ask you to bring the following types of documents.  These documents, along with the Personal data will be used to tailor a financial plan to meet your life goal.
Retirement Planning Documents

• Employee benefits program
• RRSP statements
• Deferred compensation and stock option agreement
• Pension and profit sharing statements

Tax Planning Documents

• Tax Return for last two years
• Estimated taxes
• Recent pay stub

Financial Documents

• Saving Account statements
• Mutual Funds statements
• Brokerage account statements
• Investment documents
• Loan Documents
• List of stocks held outside of brokerages
• Partnership agreements if any

Asset Protection Documents

• Life insurance policies and statements
• Medical, homeowners and auto insurance policies and statements
• Disability, umbrella and long term care insurance policies
• Annuity policies and statement

Estate Planning Documents

• Summary of your will, living will, durable powers of attorney and health care powers
• Living trusts

The Financial Planning Process consists of the following six steps:
1. Establishing and defining the client-planner relationship.
The financial planner should clearly explain or document the services to be provided to you and define both his and your responsibilities. The planner should explain fully how he will be paid and by whom. You and the planner should agree on how long the professional relationship should last and on how decisions will be made.
2. Gathering client data, including goals.
The financial planner should ask for information about your financial situation. You and the planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The financial planner should gather all the necessary documents before giving you the advice you need.
3. Analyzing and evaluating your financial status.
The financial planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
4. Developing and presenting financial planning recommendations and/or alternatives.
The financial planner should offer financial planning recommendations that address your goals, based on the information you provide. The planner should go over the recommendations with you to help you understand them so that you can make informed decisions. The planner should also listen to your concerns and revise the recommendations as appropriate.
5. Implementing the financial planning recommendations.
You and the planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your "coach," coordinating the whole process with you and other professionals such as attorneys or stockbrokers.
6. Monitoring the financial planning recommendations.
You and the planner should agree on who will monitor your progress towards your goals. If the planner is in charge of the process, she should report to you periodically to review your situation and adjust the recommendations, if needed, as your life changes.