• Financial Planning Process
• Financial Planning Questionnaire
• Financial Modeling

Finanical planning is a six step process:

1. Establish the client/planner relationship

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

Define services, required documentations and responsibilities.

2. Gather client data and determine goals and expectations

• Obtain information about client’s financial resources and obligations through interviews or questionnaires.
• Define personal and financial goals, needs and priorities.
• Investigate client’s values, preferences, financial outlook and desired results.

3. Clarify client’s present financial status

• Analyze gathered information to assess client’s current situation (cash flow, net worth, tax projections, etc.).
• Identify any problem areas or opportunities with respect to client’s:
  • Capital needs
  • Investments
  • Taxation
  • Retirement planning
  • Employee benefits
  • Estate planning
  • Special needs (i.e. adult dependent needs, education needs, etc.)

4. Develop and present the financial plan

• Develop and prepare a financial plan tailored to meet client’s goals and objectives, values, temperament and risk tolerance, while providing projections and recommendations.

5. Implement client’s financial plan

• Assist client in implementing the recommendations discussed. This may involve coordinating contacts with other professionals such as investment funds sales representatives, accountants, insurance agents and lawyers.

6. Monitor the financial plan

• Periodically contact client to review the progress of the plan and make adjustments to the recommendations.
• Review changes in life circumstances through life events such as birth, illness, marriage or retirement and make necessary adjustments.
• Review and evaluate the impact of changing tax laws and personal economic circumstances.

Since no two individuals are alike, it is important that you have a financial plan that is specifically designed to reflect your life style and goals. For that reason, the following questionnaire is important in the process of getting to understand your finances by reviewing your assets, liabilities, income and expenses. This will facilitate the development of an accurate financial model of your current finances. The real benefit to you is that once the initial model is completed, we can then easily develop second “What If” model to compare with the initial model to study the impact of taking a future action.

Click here to view the questionnaire (PDF)

The cash flow based financial models, which are created from the information provided by his clients, take into consideration their income, expenses, assets and liabilities as they relate to their long term financial goals. Once a “Base Financial Model” is developed it is then duplicated and its assumptions are altered to create “What If “model. The “What If” model can help a client better understand the impact of making different financial decisions or the impact of different external financial conditions on the achievement of their long term financial goals. The “Base Model” and the “What If models can be compared in a revealing and easy to understand side-by- side analysis. The side-by-side analysis can utilize visual graphics which can help even most inexperienced clients better understand the impact of making a financial decision before they take action.

Financial Planning is a multi-professional process. For this reason it is important to build a relationship with a Certified Financial Planner who can combine his efforts with other professionals like your CPA or attorney. Scott’s models allow your CPA and attorney to better understand your entire financial situation in one picture - simplicity at its best.