"I have enough money to last me the rest of my life, unless I buy something." -- Jackie Mason
THE FINANCIAL PLANNING PROCESS
I collect all of the essential financial documents of the client and begin the process of asking questions about their current finances. A current cash flow is created for the client to help understand the flow of income and expenditures in the household. A balance sheet is created to present all of the client's assets and liabilities.
Goal Setting and Financial Review
Initial sessions with the client revolve around defining client goals and reviewing the current state of the five areas of financial planning. This process culminates in a written report containing both a qualitative evaluation and a quantitative analysis of where you stand relative to your goals.
In this stage, the client and I build upon the financial review to make recommendations in each area. The focus of this stage depends upon the situation of the client but is always directed toward those areas that have the largest impact on the client’s goals. A detailed written Financial Plan is presented to the client at the beginning of this stage and is revised continually as our conversation progresses.
This stage posits any number of “what if” scenarios and shows the repercussions of each of them on the client’s position. Typical scenarios involve death, disability, dependent care costs, health care costs, inheritances, large capital gains taxes, education costs and more.
Semi-annual meetings reviewing and modifying the financial plan