FAQ

Financial planning is a dynamic process where clients work with a Financial Planner to identify future goals, examine resources, and design a blueprint to achieve their financial goals.

“If you don’t know where you’re going, how will you know when you get there?”
The planning process helps in identifying what is achievable within your resources. And more importantly its helps you to see clearly what is being overlooked. It helps in prioritising your goals and helps balance the task of daily needs, wants, and wishes with those of the future.

The quantifiable items are what you own, what you owe, and what you earn. They will also evaluate your risk taking ability through a psychometric Risk Profiling Test.

A financial plan should include a review of your goals and objectives, net worth, cash flow, investment portfolio, insurance, and taxes. These are the building blocks used to create projections and to design a plan for implementing strategies to achieve your goals. It can also include probabilities of success for meeting your goals to ensure the peace of mind for which we all strive.

Executing on your financial plan. If you have someone managing your investments, they should execute on your investment strategy. Communication and follow up with your planner will help you adjust to the bumps in your roadmap to maintain the lifestyle you choose.

Choose a financial planner who has experience dealing with clients in similar circumstances to yours. You’ll also want to make sure that the financial planner has your best interests in mind, and that he or she isn’t selling you products that are not suited to your needs. Interview prospective financial planners and ask them about credentials, management strategies, and history of performance.

Financial planning looks at a person’s overall financial picture. A financial planner will often ask a prospective client to fill out an extensive questionnaire in order to understand his or her financial needs and goals. The planner will usually put together a detailed, 1-year plan designed to improve the client’s overall financial position. It also contains suggestions about how to save and invest for retirement and a child’s college education at the same time. The planner will also look at ways to reduce current and future tax liabilities and protect assets by having the proper life, health, disability and long-term care insurance coverage in place. Finally, he or she may offer suggestions on estate planning.

First, ask about his or her experience with people in a similar situation to yours. Second, ask about education and certifications. Third, ask about the breadth and depth of products offered. Fourth, ask how he or she is compensated for services. Finally, always be sure to check that the financial planner is fully licensed and in good standing.

A financial planner will be able to connect all of the financial dots in order to provide you with an overall plan to meet your financial goals. He or she should have training and experience in all kinds of financial products and financial aspects of your life – equities, bonds, insurance, taxes, and estate planning – to make the right recommendations for your personal situation.

While your financial planner may make a different recommendation based on your circumstances, it’s a good idea to see him or her once a year. You should also consider making an appointment in anticipation of life-changing events such as marriage, the birth of a child, divorce, or after inheriting a large amount of money.

Fiduciary means to hold a confidence or trust. A financial services industry professional who has a fiduciary responsibility to his or her clients must put a client’s needs and interests ahead of his or her own. Financial Planners have a fiduciary responsibility to their clients. While stockbrokers and insurance agents are regulated and licensed, they do not have a fiduciary responsibility to their clients. The recommendations they make must only meet the “suitability standard.” In other words, the risk level of the product must be suitable for the client based on income, assets, risk tolerance or another standard that is specified in the prospectus. Advisors with a fiduciary responsibility are less likely to push products that earn them a quick buck.