Goals & Objectives:
Goals & Objectives should be listed by priority and should be as specific as possible. They should be specific, measurable, reasonable, and capable of financial planning.
Income Tax Planning:
Tax consultant helps you in examining the returns determine if you are maximizing tax saving possibilities consistent with the planning objectives.
A balance sheet or “statement of financial position” should be created, showing your net worth by listing all assets and liabilities. A financial consultant periodically updates the balance sheet to track progress towards overall goals and to identify changes in your financial situation that need attention.
Issues and Problems:
Issues/problems consist of observations regarding the strengths and weaknesses of your current situation as well as the risks you face. It also helps in your wealth management and financial planning.
Risk Management and Insurance:
A sudden unexpected event can derail even the most detailed plan unless you have anticipated and planned for catastrophic events. A financial adviser helps you in financial planning in such a way to ensure that you can recover with minimal loss in those situations. Insurance products are useful in managing these risks. You should evaluate your life, disability, liability, and long-term care insurance.
Retirement, Education and Special Needs:
Consideration must be given to retirement, education or any other special needs (Physically or mentally incapacitated dependents or divorce settlements). Apart from financial planning, retirement planning and pension planning is also important. Financial Projections should be prepared for these needs, along with funding strategies.
Cash flow statement:
Preparation of a cash flow statement will show income from all sources, as well as expenses that occur on a regular or recurring basis. This should be periodically updated to track progress towards overall goals and to identify changes in your financial situation that need attention.
An analysis of investments should be completed to determine if the portfolio’s earnings, growth, and diversification are consistent you are your objectives and risk tolerance.
Your financial plan should include a review of your lifetime gifts, and the final transfer of assets to reduce or eliminate your gifts and estate tax exposure.
Assumptions include inflation rates, the rate of return on investments, tax bracket, years of working remaining and life expectancy. These should be reviewed periodically against your actual financial plan and adjustments should be made accordingly.
All final recommendations should be in writing, stating the assumptions upon which they are based, projected benefits, and potential problems.
The Plan Implementation section should delineate the individuals responsible for implementing each identified task, whether it be you, your financial partner, accountant, attorney or some other expert.