The Financial Planning Process

Step 1: A financial planner starts with building a relationship with the client. During this period the client comes to know the scope of services of his planner which will define the scope of engagement between the two.

Step 2: Once both have mutually agreed, the planner will present the information required to be provided by the client. This information is basically a fact finder and helps in knowing the clients personal and financial goals.

Step 3: The planner will analyze the data so that the client's situation is properly understood and plan of action can be prepared. The objective is to determine whether there are sufficient resources to reach the client's goals and what those resources are.

Step 4: Based on the understanding of what the client wants in the future and his current financial status, a financial plan is drawn to facilitate achievements of the client’s goals.

Step 5: The financial planner and the client will mutually agree on the type of services to be provided by the planner including defining the product implementation and periodic reviews the financial plan.

Step 6: The financial planner presents periodic reports on the client’s financial situation. If there is any significant change to the client's situation, the strategies and goals in the financial plan are revised accordingly.