What’s Involved in the Financial Planning Process?
Working with a financial planner isn’t a simple process. It requires your effort as well as the planner’s. First you fill out a questionnaire that covers all aspects of your financial life. Topics would include assets and liabilities, how you spend your money, insurance coverage and tax and legal documents. (We find most clients’ main difficulty is providing realistic budget figures.) Once this information is put together, the planner reviews the financial data with you. At the same time, he or she helps you define and prioritize your goals and talks to you about your long-term hopes and dreams. After this initial meeting, the planner combines your personal and financial information and prepares a written financial plan that gives you a picture of where you are now and whether your goals are obtainable given your current situation. A typical plan includes a balance sheet as well as a statement of taxable income and cash flow. The cash flow projections should reflect at least the next t
