Financial Planning Process

Financial Planning is the integrated, coordinated, and ongoing management of an individual’s financial concerns. It’s a process, not an event, and the Financial Plan document is not a static, set-in-stone, instrument because people’s lives aren’t static. The physical Plan is a roadmap designed to direct the client from point A to point B and it requires periodic revision and adjustment.

Areas Addressed In Financial Planning

• Investment Planning
• Tax Planning
• Insurance Planning
• Retirement Planning
• Estate Planning

Gathering and Analyzing Financial Data

The process starts with an initial conference with Mr. Copelin and a perspective client who is asked provide certain financial information for this appointment. Data includes investment statements, retirement and pension plan statements, Wills, insurance policies, and tax returns. CFA provides a Confidential Data Form in which questions about family, risk tolerance, goals, and monthly cash flow are asked. During the meeting, these financial materials are discussed and clarified.

Defining Goals and Objectives 

At the initial conference with Mr. Copelin, goals and objectives are discussed; as financial data explains Point A, where the client is at this time, goals and objectives define Point B, where the client wants to be at a future time. Also, at this meeting mutual expectations are discussed and both parties seek to determine if there is a good “match” and basic agreement regarding fundamental financial issues.

Designing the Financial Plan 

At or after the initial conference with Mr. Copelin, the decision whether to proceed to the next step, the design of an individualized, Financial Plan, is made. The Plan is a hard copy document in booklet form and it addresses goals and objectives that have been discussed. It becomes the roadmap to move the client from Point A, where he is now, to Point B, where he wants to be at some future time. The Plan provides the strategy to reach Point B or it indicates that Point B can’t be reached unless it is modified. Commonly, fifteen to twenty hours are spent developing a Plan; all current investments, insurance policies, and estate documents are analyzed and numerous models and projections are constructed before the final product is produced.

Implementing the Plan

After the Financial Plan is designed and produced, a meeting is scheduled for its presentation and implementation. At this meeting the Plan and its recommendations and strategies are explained, questions are answered, and action is taken. Some recommendations are acted upon at this meeting and sometimes actions are delayed for a period of time for specific reasons, such as tax implications. Usually four to six weeks are required to complete the implementation of a Financial Plan, depending on its complexity. When implementation is complete a brief meeting is scheduled to review and update the client, to answer questions, and to insure the client understands every action that has been taken.

Monitoring the Plan

One of the expectations CFA carries into a client-advisor relationship is that the client will be available for periodic review meetings. These conferences are scheduled annually, or more frequently, depending on the complexity of the Financial Plan. If a situation develops that requires attention before the next scheduled review, CFA clients call and an appointment is scheduled as soon as possible. In fact, because of the convenience of CFA’s location, clients sometimes call to say they’re on the way to the office and to ask if someone is available.