Financial Planning Process

Question 1

Ukulele’s In A Dive-bar Playing Iron Maiden

Answer 1

Understand
Identify
Analyze
Develop
Present
Implement
Monitor

Question 2

Step 1: Understanding Client’s Personal and Financial Circumstances

Answer 2

-Obtain Quantitative (numerical, data) and Qualitative (personal, behavioral) information
-Analyze information
-Address incomplete information

Question 3

Step 2: Identifying and Selecting Goals

Answer 3

-identify potential goals
- help clients select and prioritize goals

Question 4

Step 3: Analyze Clients current actions & alternative course of action

Answer 4

-Analyze the clients’ current course of action
-Analyze potential alternative course of action

Question 5

Step 4: Develop the Financial Planning Recommendations

Answer 5

For each recommendation CFP must consider:
-assumptions and estimates used
-basis for making the recommendation
-timing and priority of recommendation
-whether its independent or must be implements with another recommendation

Question 6

Step 5: Present the Financial Planning Recommendations

Answer 6

For each recommendation CFP must present to the clients the recommendations and information considered

Question 7

Step 6: Implementing Financial Planning Recommendations

Answer 7

-address implementation responsibility
-identify, analyze and selection actions, products and services
-recommended one or more actions etc.
-select and implement

Question 8

Step 7: Monitor Progress & Updating

Answer 8

-establish monitoring responsibilites
-monitor progress
-obtain current information
-update goals, recommendations/implementation decisions