There are six steps to the financial planning process:
1. Establishing and defining the client-planner relationship
2. Gathering client data including goals
3. Analyzing and evaluating the client’s current financial status
4. Developing and presenting recommendations and/or alternatives
5. Implementing the recommendations
6. Monitoring the recommendations -

Financial planning subject areas” denotes the basic subject fields covered in the financial planning process which typically include, but are not limited to

1. Financial statement preparation and analysis (including cash flow analysis/planning and budgeting)
2. Insurance planning and risk management
3. Employee benefits planning Investment planning
4. Income tax planning
5. Retirement planning
6. Estate planning –

There are 2 key steps to the holistic planning process:

1.Cash Flow Management


2.Life Management

* All the core principles from traditional planning are used but only after a client or business can manage their cash and consciousness. Without these essential elements the best laid plans will not provide the desired return or results.

Key Areas to Measure

* Life Flow
* Cash Flow
* Mind Flow
* Emotional Flow

1. Establishing and defining the client-planner relationship - The financial planner explains or documents the services to be provided and defines his or her responsibilities along with the responsibilities of the client. The planner explains how he or she will be paid and by whom. The planner and client should agree on how long the relationship will last and on how decisions will be made.
2. Gathering client data and determining goals and expectations - The financial planner asks about the client's financial situation, personal and financial goals and attitude about risk. The planner gathers all necessary documents at this stage before giving advice.
3. Analyzing and evaluating the client's financial status - The financial planner analyzes client information to assess his or her current situation and determine what must be done to achieve the client's goals. Depending on the services requested, this assessment could include analyzing the client's assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
4. Developing and presenting the financial planning recommendations and/or alternatives - The financial planner offers financial planning recommendations that address the client's goals, based on the information the client provided. The planner reviews the recommendations with the client to allow the client to make informed decisions. The planner listens to client concerns and revises recommendations as appropriate.
5. Implementing the financial planning recommendations - The financial planner and client agree on how recommendations will be carried out. The planner may carry out the recommendations for the client or serve as a "coach, " coordinating the process with the client and other professionals such as attorneys or stockbrokers.
6. Monitoring the financial planning recommendations - The client and financial planner agree upon who will monitor the client's progress toward goals. If the planner is involved, he or she should report to the client periodically to review the situation and adjust recommendations as needed.

Financial Advisor Glossary

(401)k/403b/457(Non Profits): A retirement plan that is sponsored by an employer is called a 401(k). The employee’s contribution to the plan is taken out of his or her income pre-tax. Some employers will match the employee’s contribution, up to a certain amount.

529 Plan: Families wishing to save college funds for children can use a 529 plan, which is sponsored by a state. Most states offer 529 plans. If the earnings are used for college expenses, they’re not taxed.

Annual Report: Every year, corporations produce formal financial reports. The purpose of an annual report is to give shareholders a picture of the company’s financial health and other activities. Annual reports will give information on assets and liabilities, profits and losses, expenses, revenue and more. Most states require corporations to file annual reports.

Asset Management: The professional management by a financial services company of a client’s investments is called asset management. The investments can include securities, such as stocks, bonds and mutual funds, and tangible assets such a real estate.

CFP®: A Certified Financial Planner (CFP®) is a professional who has earned certification from the CFP Board. Such certification requires extensive training and experience, as well as adherence to high ethical standards.

Commission: A commission is the money that a broker or advisor charges a client for their advice and handling of financial accounts.

Dividend: A dividend is money paid to a class of a company’s shareholders. The company’s board of directors determines the amount and it’s usually based on the financial health of the company.

Earnings Report: Think of an earnings report as a public company’s “report card.” It’s also called an income statement and it reflects the company’s earnings, expenses and net income.

Estate Planning: Estate planning includes making decisions about how one’s estate/wealth will be distributed following that person’s death and setting up the estate so those decisions are properly carried out.

Fee-Based: A fee-based financial advisor is compensated by a combination of charging fees to the client for financial planning and earning commissions on financial products he or she sells to the client.

Fee-Only: A fee-only financial advisor is paid directly by his or her client. No compensation is contingent upon the purchase or sale of a financial product.

Fiduciary: A fiduciary is a trustee who is legally appointed to hold assets for someone. He or she manages the assets for the other person’s benefit versus his or her own.

Financial Advisor: A financial advisor provides financial advice to clients and is compensated in return. Financial planners, investment managers, and those who sell financial products can all be financial advisors.

FINRA: FINRA is the acronym for Financial Industry Regulatory Authority. After the National Association of Securities Dealers and the New York Stock Exchange’s regulation committee merged, FINRA was created in July of 2007. It’s a regulatory body that governs business between brokers, dealers and the public. FINRA is the largest regulatory body (that’s not associated with the government) of U.S. securities firms.

Independent Broker: An independent broker is a member of the NYSE who executes orders for other brokers. It may be for brokers who don’t have a member on the exchange floor or who have too many orders and aren’t able to execute on them all.

Margin: When a client uses a broker’s credit to buy a security, the margin is the amount the client pays. The margin requirements have ranged from 50% to 100% of the purchase price since 1945. The Federal Reserve sets margin requirements.

Net Worth: A person or company’s net worth is the amount of liabilities subtracted from assets. Liabilities can include mortgages, loans, credit card debt and more. Assets can include investments, real estate, savings, personal property and more.

Portfolio: A portfolio can be composed of bonds, common stocks, preferred stocks and other securities. Portfolios can be managed by financial professionals and/or held by investors.

Prospectus: The Securities and Exchange Commission requires a securities issuer to file a prospectus. It’s a legal document that gives a potential investor details about the investment offering so that he or she can make an informed decision about the purchase.

RIA: RIA is the acronym for Registered Investment Advisor. The Investment Advisers Act of 1940 defines an RIA as a “person or firm that, for compensation, is engaged in the act of providing advice, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications.” A Registered Investment Advisor is registered with state investment authorities or the SEC

SEC: SEC is the acronym Securities and Exchange Commission. The SEC was created by Congress in 1934 to help protect investors and regulate the securities market. Five commissioners, each serving a five-year term, which are appointed by the president and approved by Congress make up the Securities and Exchange Commission.

The SEC administers certain statutes: the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities Act Amendments of 1975, the Trust Indenture Act, the Investment Company Act, the Investment Advisers Act and the Public Utility Holding Company Act. The purpose is to protect investors from fraudulent/manipulative practices and to promote full disclosure.

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