Most people confuse Financial Planning with Investment planning,
which is just one part of financial planning. We at Proficient Financial Planners,
follow the 6 step financial planning process stipulated by
The Financial Planners Standards Board (FPSB) and it consists of the following steps.
Define & Establish Relationship with Client
The financial planner needs to first satisfy the qualification and experience criteria to the client to give him the confidence to engage with him. He also needs to appraise the client of the services provided and the process that they take the client through. This is followed by informing the client of the fees that will be charged for the services selected. Planner and client responsibilities are defined. Lastly he needs to provide disclosures which might create conflict of interest. Only when the client is satisfied with the entire disclosure he signs an agreement with the planner as per the terms mutually discussed in the agreement followed by payment of advance fees.
Collect the Clients Information
Once the agreement is signed, Clients need to share their financial data along with their KYC information. Mutually financial goals are set with appropriate values and relevant financial documents are shared. The planner may conduct 1-2 meetings with the client to verify and collect all the financial data needed for him to analyse and create the Financial plan.
Analyse & Assess the Client's Financial Situation
Here the planner processes the data collected and analyses the clients financial situation with respect to his/her financial goals, Contingency, insurance cover etc.
Develop the Financial Plan and Present it to the Client
Post analyzing the data, the planner prepares recommendations and strategies for enabling the client to create a sound contingency fund, adequate insurance cover along with deployment of the cash flows and investments in the right assets as per their goals and risk profile. A complete roadmap is provided in a format easily understood by the client to take an informed decision and action.
Implement the Financial Planning Recommendations
Here the client decides to go ahead with the implementation in consultation with the planner as per the scope mentioned in the agreement. He provides his acceptance of the recommendation offered. If the planner has agreed to help in implementing the investments through direct plans (zero commission) then he will initiate the process while for insurance and other products the client will be guided by the planner in direct plans only to enable the client to save on costs.