WealthFolio financial planning process

WealthFolio Financial Planners practice the following six-step process while delivering the service.

1. Establishing Client-Adviser Relationship
A Financial Planner should start off by explaining the scope of his/her services and ascertain the specific services the client may need. The responsibilities of both the Planner and the Client need to be defined with any situation of conflict of interest. Planner may also at this point discuss the remuneration structure and the professional fees.

2. Understanding Client’s Situations & Goals
A Financial Planner should then help the client define his/her financial goals and objectives, income and expenditure patterns, assets and liabilities and discuss, if relevant, client’s past experience with managing money and investments.

3. Analyzing client’s Financial Advisory needs
A Financial Planner after collecting data and information should assess the current situation and make an analysis of Financial Planning needs. Depending on scope of services, this could include analyzing assets, liabilities, income, expenses, cash flow, current insurance coverage, salary structure, investments, tax strategies, etc.

4. Developing Recommendations and Strategy
Based on analysis and application of Financial Planning concepts, advisor should recommend goal oriented strategies and action plan. The client is then guided through the strategies to help him make informed decisions.

5. Offering the Right Products and Services
Planning without action is a futile exercise. In this process, the Planner guides client to implement the specific action points from Step 4, by suggesting the right financial products encompassing life insurance, general insurance, mutual funds, stock portfolio, deposits, etc.

6. Monitoring the Performance
The real success of the advice lies not just in making good recommendations but on achieving the desired outcomes by implementation of those recommendations. We live in a dynamic world with constant changes in
economic environment, change of goals, launch of new financial instruments, etc. Therefore, the advice needs to be monitored, reviewed and aligned to these changes on an ongoing basis.

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