Financial Planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life; it’s not just about buying products like a pension or an ISA – it’s about a journey.

In the financial planning process, there are 6 distinctive steps:

Define the terms of the engagement

Working with the client to define and agree on the scope of the plan and roles of responsibilities of the advisor and the client.

(Advisor Disclosure and Letters of Engagement)

Identify the client’s goals, needs and priorities

This should be completed prior to making and/or implementing any recommendations. (Know Your Client)

Obtain client’s information

Using approved compliant tools, gather the pertinent information from client both in qualitative and quantitative form. (Financial Needs Analysis Data Sheet)

Analyze the information

As it relates to the strengths and weakness of the client’s current financial situation, and consider them relevant to the client’s goals, needs, and priorities. (Use compliant software or calculator to determine the depth and breath of current and proposed solution)

Make a recommendation

Based on information gathered and align them with client needs and wants.

Implement and review client’s situation.

The financial planning process is not static, rather it is dynamic and every changing.  Life changes will impact when, how often and by how much a plan should and needs to be adjusted.  Likewise the acquisition or release of assets will impact the projections of a plan.  Moreover, a change in employment and residency does require an updated plan which could significantly improve and impact the plan.