The Financial Planning Process

Effective financial planning is about enabling people to reach their goals.

A qualified financial planner will conduct a proper needs analysis for you based on your goals.

Working with a Financial Planner

What can I expect from my financial planner?

1. Establish a relationship

During this step, you and the financial planner get to know each other – it is the start of a trust relationship.

You agree on what your respective expectations of the process are, as well as the basis of the remuneration involved.

2. Gather information

The financial planner will gather all the available information from you. Depending on your needs, this may include a list of assets (including pension fund details), liabilities, income and expenditure, goals, etc. It is important to provide as much information as possible, as the planner’s recommendations will depend on his/her ability to form a holistic view of your affairs.

3. Analyse

The financial planner will analyse your situation based on all the information received.

This usually involves a number of calculations to determine possible shortfalls.

4. Make recommendations

The financial planner will recommend what you should do to work towards meeting your goals. A general misconception is that this will require you to purchase a myriad of additional financial products. Often, it simply entails rearranging your affairs to maximise your spend on wealth creation and protection. She will ensure that you understand the proposed recommendations in order to make an informed decision.

5. Implement

Once you have decided what you would like to do, the financial planner will assist you with implementation (eg, making an investment).

If you may require a service/product that the planner cannot provide, she will refer you to an expert in a particular field to assist.

6. Review

You will agree with the financial planner on how often your portfolio should be reviewed.

Generally speaking, an annual review is sufficient, however, it is important that you contact your financial planner when your circumstances change, e.g. if you get divorced/retrenched, or when a new baby is born.