Financial Planning

We adhere to the standards and best practices of our profession. This recognizes the six basic steps in the financial planning process. It also includes a disclosure regarding compensation and an engagement letter.

1) Clarify Present Situation including: Net Worth Statement, Cash Flow Analysis, Tax Position, Life and Disability Insurance Current Coverage, Powers of Attorney and Wills, Debt to Equity and Debt to Servicing Analysis.

2) Establish Realistic Goals and Objectives: Clearly stated and prioritized with reasonable assumptions.

3) Identify Problem Areas and Opportunities:

• a) Net Worth  / Cash Flow Issues: Establish an emergency fund, addressing surplus and negative cash flow, strategies to pay off non-deductible debt, establishing savings program, revised cash flow plan.
• b) Investment Planning / Strategies: Determination of risk tolerance, current asset allocation analysis, proposed asset allocation comparison.
• c) Retirement / Financial Independence Planning: Review of registered investments and pension plans, retirement projection to planning horizon (beyond average life expectancy), proposals using reasonable assumptions.
• d) Tax Planning: Current tax projections and marginal tax rates, income splitting opportunities.
• e) Risk Management: Review of current insurance coverage including beneficiaries and tax issues, review of beneficiaries on all plans including creditor coverage, review of home insurance, review of auto insurance, review of umbrella coverage, business insurance.
• f) Estate Planning: Review of executors, guardians, common disaster, trusts relative to goals, examination of powers of attorney, review of beneficiaries on policies and plans, joint property (JTWROS) & family property.
• g) Special Needs: Educational funding, foreign asset ownership, disabled loved ones.

4) Provide Written Recommendations and Alternative Solutions: The pros and cons of each recommendation must be clearly explained in the plan. Alternatives should be provided where applicable.

5) Implementation of Strategy: Action steps necessary with time expectations for the implementation of financial plan.

 6) Ongoing Monitoring and Review of Plan: People do not plan to fail - they fail to plan.  The plan should be reviewed for progress annually or upon significant changes in client's cuircumstances.