Gathering Information To Prepare A Financial Plan

Effective financial planning requires comprehensive information on all aspects of the clients financial program. Such information includes a record of income and expenditures as well as the clients individual or family financial position. In setting his or her objectives the client will need to take into account the health, age, lifestyle, taste, and preferences of individual family members. Much of this information is subjective, and attitudes may shift considerably over the years, such changes make it important that the client update his or her plan regularly. Keeping the clients records on a personal computer will enable you to revise your data at new information whenever necessary. In some cases an enrolled agent will even recommend having an online computerized software the client as well as you can review them regularly updates electronically over the Internet.

Another important area of background analysis has to with the clients attitude towards the degree of risk he or she is willing to accept in the financial plan. Feelings about investment risk, personal financial security, independence are just as important as their income statement or net worth. Awareness of these feelings enables the client and planner to establish realistic, and acceptable objectives as you will learn in the fast forward academy course. By ignoring these feelings you may develop a good good plan that is simply out of touch with your client personality. Such plans are not likely to be implemented, and a great deal of time and effort will have been wasted.  Thus, you should always try to develop a plan that not only makes sense for the clients financial position, but also is realistic and meets the clients objectives.  You should also bear in mind that as a financial planner, it's your job and duty to best make suggestions to protect your clients assets and at times this advice will not be well received by your client.

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