Basically,
financial planning is that process of estimating the capital needed and
determining the competition. It is one process that will frame financial
policies in relation to procurement, investment and administration of the funds
of the enterprise.
It is
also estimating the capital required and determining the completion of that.
The process is framing financial policies in relation to the procurement,
investment and the administration of funds of an enterprise.
It is
framing the objectives, policies, procedures, programs, and budgets regarding
the financial activities of the client company.
Planning process / client relationship
The
steps in the planning process are as follows: (1) establish and define the
relationship with client, (2) collect client information, (3) analyze and
assess client’s financial status, (4) develop planning recommendations to
present to the client, (5) implement planning recommendations, and (6) review
the client’s situation.
The
first is defining the relationship with the client. The planning professional
informs the client about the process, the offers, and the Texas financial planning professional’s experience and his highest skill levels. The scope of this
engagement is set out in writing to be formally accepted by the client.
Client information / Analysis and
assessment
The
planner and the client will then identify the client’s personal and financial
objectives, needs and priorities. The planner will collect sufficient information
and documents about the client that should be relevant to the scope of their
relationship.
The
financial planner will then analyze the client’s information in order to gain
an understanding of the client’s financial situation. He will then assess the
strengths and weaknesses of the client’s current financial situation. He will
view them in the context of the client’s objectives, needs and priorities.
Recommendations
Our
financial planner will consider one or more strategies that are relevant to the
client’s current financial situation. These have to meet the client’s
objectives, needs and priorities.
He
will then develop the financial recommendations on selected strategies to
reasonably meet the client’s confirmed objectives. He will then present these
financial planner’s recommendations and the supporting rationale in such a way
that the client will have the proper perspective to make an informed decision.
Implementation
The
planner and the client will then agree on the implementation. These will have
to be consistent with the scope of their engagement, the client’s acceptance of
the Texas financial planning recommendations, and the planner’s professional ability
to implement the recommendations.
Based
on the engagement scope, the planner identifies and presents the appropriate
products and services which shall be consistent with the financial professional’s
recommendations as accepted by the client.
Reviewing the client’s situation
The
client and the financial planner will mutually agree on the terms for reviewing
and re-evaluating the situation of the client. This will include the goals, the
risk profiles, the lifestyle and the other relevant changes.
During
the review, the planning professional and the client will review the situation.
This is to assess the progress toward the achievement of the objectives of the Texas financial planning professional and to confirm if they are still relevant and
whether revisions are needed.
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