Financial Planning Process
In performing our Financial Planning function, we ultilize the CFP Board's Standards of Professional Conduct.
http://www.cfp.net/learn/standards.asp
The Financial Planning Process consists of the following six steps:
1. Establishing and Defining the Relationship with the Client
The financial planning practitioner and the client shall mutually define the scope of the engagement before any financial planning service is provided.
2. Gathering Client Data
The financial planning practitioner and the client shall mutually define the client's personal and financial goals, needs and priorities that are relevant to the scope of the engagement before any recommendation is made and/or implemented.
3. Analyzing and Evaluating the Client's Financial Status
A financial planning practitioner shall analyze the information to gain an understanding of the client's financial situation and then evaluate to what extent the client's goals, needs and priorities can be met by the client's resources and current course of action.
4. Develop and Presenting the Financial Planning Recommendation
The financial planning practitioner shall consider sufficient and relevant alternatives to the client's current course of action in an effort to reasonably meet the client's goals, needs and priorities.
5. Implementing the Financial Planning Recommendation(s)
The financial planning practitioner and the client shall mutually agree on the implementation responsibilities consistent with the scope of the engagement.
6. Defining Monitoring Responsibilities
The financial planning practitioner and client shall mutually define monitoring responsibilities.
“CFP Board’s Standards of Professional Conduct Copyright ©2010, Certified Financial Planner Board of Standards, Inc. All rights reserved. Used with permission.” August 2010
