Analyze Financial Goals and Objectives
The analysis of a client’s financial goals and objectives must identify all factors to be integrated into the financial decision-making process. The client must play a key role in the establishment of the financial goals and objectives. Financial goals and objectives must be consistent with client values and attitudes about their personal life. Without this “buy-in” from clients they will most likely not make the commitments necessary to accomplish their life aspirations. The financial plan and investment policy statement should be the basis for a common understanding between client and financial advisor. A commitment to your True North, a path we can find with your inspiration and our help.
By collecting, reviewing all of the following documents, you can begin the analysis:
- Investment Policy Statements
- Applicable Will and Trust Documents (including amendments);
- Custodial and Brokerage Statements;
- Insurance Policies;
- Service Agreements with Investment Management Vendors;
- Information on Retained Money Managers,
- Last 2 Years Tax Returns;
- Closely Held Business Documents (including Valuations), and;
- Any Documents Pertaining to Client Assets and Liabilities.
In this step of the process, it is necessary to obtain a complete understanding of the client’s current financial position, legal and regulatory constraints, current service providers and professional advisors, and investment risk/return profile. This understanding is obtained from an in-depth analysis of the current facts and circumstances pertaining to the funds to be invested.
