FINANCIAL PLANNING IN 5 STEPS

1. Discuss How We Can Work Together

Your advisor will explain the services they will provide and define each of your responsibilities. Along with compensation, you’ll discuss how long the professional and financial relationship will last and how you and your advisor will make decisions.

2. Get to Know You and Understand Your Situation

You and your advisor will talk about your background, circumstances, and current financial situation. Together, you’ll define your personal and financial goals, including timeframes. You may also want to discuss your comfort level when it comes taking financial risks.

3. Develop the Best Plan and Set Goals

Your advisor will take all your finances into account and determine how to meet your goals. The analysis may cover your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.

4. Put Your Plan into Action

You and your advisor will need to agree on how the recommendations will be carried out. Your advisor may carry out the recommendations, or serve as your coach, coordinating the process with you and other professionals, like attorneys or stockbrokers.

5. Follow Your Progress and Stay on Track

As you work towards your goals, you and your advisor will need to decide who will monitor your progress to make sure you’re staying on track. If the planner is in charge, they will check in from time to time, reviewing your situation and making any necessary adjustments to recommendations.