The 6 Steps to Successful Financial Planning
Step one and two occur during our first meeting. In step one, we are determining your goals and concerns. We want to:
1. Quantifying specific dollar goals within definite time frames and clarify your goals within those parameters.
2. You will rank your objectives according to your priorities.
3. Together, we will examine these objectives in respect to your available resources and other limitations. Our key role at this stage is to assist you in the establishment of your financial objectives, make sure we understand your concerns.
The second step of the financial planning process occurs as we are gathering this data. We begin asking many questions to help us understand your lifestyle, health, and investment-risk tolerance level. In addition, we determine information about investments, cash flow, insurance coverages, and present liabilities or other obligations. All this information is gathered on what we call a Confidential Questionnaire. We hope that during this step your confidence will grow as you see your plan begin to develop.
The third step consists of processing and analyzing the information we gathered. We will undertake a review of the following: Your financial position and current cash flow statement; a review of existing insurance policies and other legal papers such as wills, trust agreements, and buy-sell agreements. We then analyze the information to determine the strengths and weaknesses of your finances; evaluate your objectives in view of available resources, and economic conditions as they relate to future resources and cash flow. It is my role as a financial planner to examine the viable options for achieving the determined objectives. We begin to look at the products and strategies that may be selected for implementing the final plan. The end result will be a fully developed set of recommendations to meet the goals you stated in our first meeting.
The forth step is all about education of our concepts and principles, products and services. For example: Money and how it works, how life insurance works, what is a mutual fund, variable and fixed annuities, what is an alternative investments, how they work, and how they may or may not be appropriate in your plan and so much more. This is a time for you to ask questions about each strategy we present as it relates to solutions for achieving your goals. Recommendations can change during this process, or at the least, be reviewed and altered based on your input.
The fifth step in the financial planning process is implementing your plan.
The sixth step is monitoring the plan. Periodically we should review your plan to evaluate the significance of any changes in federal tax, economic conditions, and available investment techniques. If you choose to use our investment advisory services you will be encouraged to have quarterly meetings related to your assets under management. Beyond this, we will schedule times on a bi-annual basis to examine our mutual progress toward achieving objectives. Changes can be made in the financial plan as may be determined by personal, business or family circumstances.
The financial analysis and recommendations are not intended to replace the need for independent tax, accounting, or legal review. Individuals are advised to seek the counsel of such licensed professionals.
Paul Agliata is a Registered Representative and Investment Representative of LifeMark Securities Corp. 400 West Metro Financial Center, Rochester, NY 14623, 585-424-5672, Member FINRA / SIPC. Mortgage Loan Originator ID # 1367562 with Home Point Financial Corporation 1194 Oak Valley Drive Suite 80, Ann Arbor, MI 48108 ID # 7706, (734) 256-4590