The first step in our process is to gather the information we need to understand where our clients are today. Some of the documentation we need are things like; IRA and/or 401(k) statements, income information, expense information, health, family dynamic including parents and children, risk tolerance and goals. We use this information to build out the client profile.
The next step in the process is the analysis, which is done behind the scenes. We nerd out and see if your financial goals line up with your risk tolerance and future income needs with your current savings rates. We examine what investments you currently own and see if there are any areas of improvement. We look to see if the clients are sufficiently insured for family income protection, discuss the importance of having documents like a Will and a Trust. We also look for ways to reduce or sometimes eliminate any income taxes through Government sponsored investments with special tax treatment. We look for opportunities to convert tax deferred savings into tax free savings. We also look at children's education savings and plan for an inheritance or on the other side, financial liability with our parents.
The discovery phase of the process is when we bring the client back in and reveal our findings. We explain what you are doing right and highlight any areas of concern. We provide recommendations and a written financial plan. We provide online and mobile access to real time account data with cloud-based storage for important documents.
From here it is simple. By now we have gotten to know our new friends and have an idea of where they are in relationship to their goals and have given them an education on topics that are so important but seldom talked about. They may be excited to be headed on the right path or it may be a nudge to start saving more or getting certain important documents in order. Either way, the smoke has cleared, and they can act on the information.