The Exemplar 5 Step Financial Planning Process

Transcription

1 The Exemplar 5 Step Financial Planning Prcess Step 1: N Obligatin Meeting Step 2: Data Take Meeting Step 3: Plan Delivery Meeting Step 4: Implementatin Meeting Step 5: Annual Review Meeting Step 1: Cnducting the Initial N-Obligatin Meeting Setting the Appintment Pre-Appintment Cntact Letter cnfirming first appintment sent t prspect, alng with business card f Planner Meeting cnfirmed by yur ffice the day befre and directins t ffice reviewed Appintment Details Yur assistant has them fill ut an Issues and Cncerns questinnaire Issues and Cncerns questinnaire intended t pinpint majr cncerns and ther weaknesses prspect may nt have cnsidered. This will help determine hw yu will ask questins: i.e., if majr cncern is saving taxes when reviewing their infrmatin, pint ut where (NOT HOW) they can save taxes. Reinfrce that yu can fix their prblem!! Dn t Advise NOTE: Planner enters with yellw pad, pen and calculatr nly Start with Small Talk Planner lays ut guidelines fr the meeting: State: We want t get a general verview f yur financial situatin, yur cncerns and why yu are here (t see if we can help them.) Then we ll talk abut hw we wrk with ur clients. If there is a fit, we will discuss hw t prceed. If nt, that s fine als. Des that sund fair enugh? Planner Cnducts Business Prtin f the Meeting Ask why they are here Always ask hw they heard abut yu. Ask if they have visited r wrked with a financial planner. Get them t answer yu. Ask t see the infrmatin they brught t the meeting. Lk fr: Hw lng prspect has wrked with existing brker, advisr, etc. Different brkerage accunts Why they made the investments they did Taxable interest r dividends Hw lng has he/she wrked fr their cmpany Questin, Questin, Questin!! tll free: lcal:

2 NOTE: Remember t direct questins tward their majr cncerns Describe yurself (yur firm) and yur services. Keep it BRIEF! We specialize in pre-retirees and ne f their main cncerns is hw t save taxes which will allw them mre mney fr their retirement. We accmplish this thrugh the planning prcess. During the planning prcess ur gal is t reinfrce that their financial wes require a written financial plan. Review ur Fur Step Financial Planning Prcess 1) Gals 2) After Tax Rate f Return 3) Manage Risk 4) Individual Investments A summary f the planning prcess which will help t... save taxes, increase yur rate f return, put yu n the right track fr retirement, OR whatever their majr cncerns were. After Initial Appintment Send Client Welcme Letter with date, time, and place fr the Data Take Cnfirm the Data Take appintment the day befre In-huse Tasks Administrative file established, wrking file established, name, address, and phne number entered in Gldmine tll free: lcal:

3 Step 2: The data gathering Appintment Cnfirm the appintment ne day prir and give directins This interview is fr gathering infrmatin nly Dn t advise clients at all Cntrl the meeting Small talk Outline business prtin f meeting Cnduct business prtin f meeting Gather Infrmatin Discuss gals and cncerns End meeting talking abut smething imprtant t them Materials Needed fr Data Gathering: Data Gathering Frm Yellw Pad r Fact Finder Calculatr Black Pen, Red Pen and Highlighter Issues and Cncerns Questinnaire prspect had previusly filled ut The appintment Greet, brief small talk and begin Outline Meeting - Gal tday is t review all f yur infrmatin, discuss yur gals and cncerns and identify any missing infrmatin necessary fr yur financial plan Prceed by reviewing infrmatin using Infrmatin Needed fr a Datatake as a guideline Incme Tax Frm Are itemized deductins the same tday? Review Schedule B Review Schedule E, etc. Current Statements frm Investments Are they currently wrking with ne r mre brkers? Why did they invest in these particular prgrams? Listen fr the decisin maker! Listen fr psitive r negative cmments regarding ther brkers r the investments they currently wn. Hw lng have they been there? Hw are the accunts titled? Are their savings accunts deferred spending accunts? Current IRA s & Qualified Plans If there is a pensin, is a lump sum available? Are they maximizing their cntributins? All Outstanding Liabilities What is their feeling abut debt? D they have credit card debt r hme equity lans? If s, wh is the spender? What is the interest rate n their mrtgage? Current Life Insurance Plicies When did they purchase, why and frm whm? D they knw what they have? D yu detect any strng relatinship with an agent? Determine surrender charges. tll free: lcal:

4 Current Expenses D they seem in line? Gather any Wills r Trusts Hw lng ag were they drafted? D yu detect a strng relatinship with any attrney? Descriptin f Cmpany Benefits What are the 401k ptins available? D they have a flexible reimbursement plan available? Payrll Stub Hw ften are yu paid? (twice a mnth r every tw weeks?) Review ALL deductins t pay. Gals f the data gathering appintment Planners thughts: This is the part f the interview where yu really get t knw yur prspects and build trust. N ne has ever asked them these types f questins befre. Yu will be surprised at hw much they will tell yu! Spend mst f yur time listening. Take ntes fr future reference. Dn t give advice. Find ut: What s imprtant t yur prspect abut mney Retirement At what age? Hw much incme in tday s dllars? (use current incme as a guideline) Discuss Investment risk Cllege When? Hw much mney per year? Hw lng? Survivr Gals Hw much mney fr survivr? Pay ff all debt? Pay ff cllege cst? Run sme numbers Inheritance t Kids Is there anything else we shuld discuss? What s mre imprtant; the kid s educatin r yur retirement? What s mre imprtant, TIME r MONEY? What are the tw mst imprtant things that yu feel we can help yu with? Identify additinal infrmatin they need t get t yu and an estimated time fr the plan delivery which is at yur ffice. tll free: lcal:

5 Step 3: Presenting and Selling the Financial Plan Gal f meeting - Shw yu hw t put tgether an effective Financial Plan. Review a Sample Plan Reiterate their Gals Present their Present Situatin Pint Out the Prblems Present the Slutin Shw the Benefits f the Slutin Be prepared t discuss the prs & cns Shw hw the Slutin gets t GOAL ATTAINMENT! Start with small talk Outline the Meeting Tday we are ging t g thrugh the numbers t make sure yu understand ur recmmendatins, based n yur gals. Therefre, it s imprtant fr yu t ask questins if yu dn t understand anything we are cvering tday. We will g as lng as it takes t get thrugh the plan. Des that sund OK t yu? Cnduct the plan delivery D nt let them lk at the plan until yu are ready (cntrl) Deliver the Plan After the plan is delivered What I d like t d is schedule ur next meeting t begin t implement yur plan. We will start by presenting specific investments accrding t ur suggestins. Set date fr the implementatin meeting. Handle bjectins: Hw much is this ging t cst us? Hw des this wrk ging frward? Let us take this hme and discuss this. Can t we d this urselves? Get plan delivery frm signed Cllect any remaining fee & give receipt Talk abut smething that s imprtant t them. tll free: lcal:

6 Step 4: Implementatin Meeting Start with small Talk Outline the business prtin f yur meeting Review purpse f implementatin (e.g. investing IRA Funds) Review individual investment suggestins Discuss ur cmpensatin Cnduct the business prtin f the meeting Review general suggestins in the financial plan Financial Independence Timeline Asset Allcatin Give them specific written recmmendatins Use as a guideline fr remainder f the meeting Discuss management cmpanies in general If ne mutual fund cmpany will represent the majrity f the prtfli, spend mre time discussing it. (I.e. the American Funds use What Makes American Funds Different brchure) Review the specific mutual fund management cmpany Present Mrningstar Prtfli snapsht Review diversificatin Style bx Sectr weightings Review histrical rate f return relate it t what they need Review risk Beta cmparing t the S&P This als helps us t determine hw much shuld be invested in each fund Present Mrningstar verlap if necessary Review individual Mrningstar reprts Style bx Returns- relate t 1994, 2000, 2001, 2002 Shw hw prtfli allcatin will lk after implementatin Discuss timing f investment all nw r dllar cst averaging Discuss hw we get paid (Always last) End the meeting talking abut smething imprtant t them tll free: lcal:

7 Step 5: The annual client review Start with mall Talk Hw are yu? Anything new? Hw s yur health? Outline the business prtin f yur meeting Cnduct the business prtin f the meeting Ecnmic verview Prtfli snapsht Review allcatin f IPU Review individual Mrningstar reprts Review suggested changes Review Financial Timeline if necessary Address ther issues r questins Update the fact finder with any new infrmatin End the meeting by talking t them abut smething that is imprtant t them (mre specific than small talk) Kids Wedding Cruise Summer hme, etc. tll free: lcal: