Mar 1, 2019
We're going to try to boil the process of financial planning
down into six steps. It's a daunting challenge, but it will help
you better grasp the process.
What You'll Learn:
3:12 – There Are Fewer Companies To Invest In Than There
Used To Be.
- The Wall Street Journal recently published an article
saying there are less companies trading on U.S. exchanges. In fact,
the market is about half the size it was at its peak in the 1990s.
This means certain companies have larger impacts on the market than
4:52 - Why You Need To Define The Client-Planner
7:13 - Gather Client Data, And Include
- Gathering data is the second of our six steps. This sounds
intuitive, but some advisors don't do a good job of assessing their
clients' needs and goals. Your advisor should get to know you and
learn your goals, your concerns, and your background. You want to
feel comfortable with your advisor.
14:10 - Your Advisor Needs To Analyze And Evaluate Your
Current Financial Situation.
- Your advisor should help give you a current picture of your
finances. They should point out what's going well and what needs to
change. You can't begin to select investments without developing an
16:22 - Most People Aren't Where They Think They
- Many investors don't have a clear understanding of their
current financial situation. They tend to either over- or
under-estimate the security of their financial situation.
Your Advisor Needs To Develop A Plan For You
- Usually, there's time involved between steps three and four of
the planning process. Your advisor needs time to develop a plan
that's custom-fit to your situation. They need to build a strategy
and make investing recommendations for you to assess.
18:50 - Is Your Advisor Helping You Implement Their
- Assuming your advisor did step four correctly, they should be
willing to help you implement their recommendations. Too many
advisors give you a prescription without offering to help you
implement that plan.
Is Your Advisor Monitoring Your Plan?
- Things change in life, and when they do, your advisor should be
monitoring those changes and helping you to adjust your plan.
"Before a relationship starts, the client should know what it
will look like." - Joel Johnson
ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti
For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/the-six-steps-of-financial-planning/