Financial Planning Process

Financial planning consists of the following six distinct steps. If you desire comprehensive financial planning, these are the steps that should be followed. This "big picture" approach sets Certified Financial Planners apart from all other advisors.

1. Establish the client-planner engagement

Your planner should:

Explain issues and concepts related to the overall financial planning process that are appropriate to you.

  • Explain the services he or she will provide and the process of planning and documentation.
  • Clarify your responsibilities as a client.
  • Clarify his or her responsibilities as your planner.

You and your planner should:

  • Discuss the scope of the client/planner engagement.
  • Agree on how decisions will be made.

2. Gather client data and determine your goals and expectations

Your planner should:

  • Obtain information about your financial resources and obligations through interviews or questionnaires.
  • Gather all the necessary documents before giving you the advice you need.

You and your planner should:

  • Define your personal and financial goals, needs and priorities.
  • Investigate your values, preferences, financial outlook and desired results as they relate to your financial goals, needs and priorities.

3. Clarify your present financial status and identify any problem areas and opportunities

Your planner should:

  • Analyze your information to assess your current situation (cash flow, net worth, tax projections, etc.).
  • Identify any problem areas or opportunities with respect to your:
    o Capital needs
    o Risk management needs and coverage
    o Investments
    o Taxation
    o Retirement planning
    o Employee benefits
    o Estate planning
    o Special needs (i.e. adult dependant needs, education needs, etc.)

4. Develop and present the financial plan

Your planner should:

  • Develop and prepare a financial plan tailored to meet your goals and objectives, values, temperament and risk tolerance, while providing projections and recommendations.
  • Present the plan to you and establish an appropriate review cycle.

You and your planner should:

  • Work together to ensure that the plan meets your goals and objectives.

5. Implement your financial plan

Your planner should:

  • Assist you in implementing the recommendations discussed if you want. This may involve coordinating contacts with other professionals such as accountants, and lawyers.

6. Monitor the financial plan

You and your planner should:

  • Agree on who will monitor and evaluate whether your plan is helping you progress toward your goals.

If your planner is in charge of the process, your planner should:

  • Contact you to review the progress of the plan periodically and make adjustments to the recommendations required to help you achieve your goals.

This review should include:

  • A discussion about changes in your personal circumstances and how they might affect your goals.
    A review and evaluation of the impact of changing tax laws and economic circumstances.


Mutual Funds and Some Segregated Funds Provided by the Fund Companies
are Offered Through Worldsource Financial Management Inc.
Other Products and Services are offered through Michele Reid, CFP CLU.

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