Establishing and defining the client-planner relationship:
The certified planner’s duty is to know the client (you), which means lots of questions about your concerns, needs, and current financial status. Without using a planner this part becomes your responsibility for your own honest self introspection. “Know thy self.” Half of the investment equation is emotional; what are you comfortable with and what are you not comfortable with? The professional needs to know you well enough to develop a financial plan that has a good chance of reaching your goals and allows you to sleep at night. The questionnaire worksheet provided in this site is a slightly modified version of one that is frequently used by the professional planner.

Gathering client data including goals:
Analyzing and evaluating the client’s financial status:
The planner will ask to review many of your documents such as insurance policies, tax returns, retirement plans, investment accounts, wills, POAs, etc. Your goals should be established at this point so the analysis of your current status can better measure the realism of your goals such as a retirement date, plans in retirement and the investments needed to accomplish your goals.

Developing and presenting financial planning recommendations and/or alternatives: This is where the hard work shifts from you gathering and presenting all the preceding, to the planner who must now put together a plan and advise you as to what you will need to do to accomplish your goals. When the planner comes back to you he/she should have a written proposal for an overall plan and specifics as to an investment style for your 401k, IRA, or other accounts.

Implementing the financial planning recommendations:
Together you and the planner review and discuss the plan proposal and if it is to your liking, agree on how it is to be implemented.

Monitoring the financial planning recommendations:
You need to periodically review the plan and keep your planner advised of major changes in your life. Remember that you need to give your plan time to work. A once a year major review should be adequate. That doesn’t mean that you shouldn’t track what is going on. Continue to ask questions of the planner. Remember also that you must remain comfortable with the plan but do not obsess over it. A good plan will work if given the chance. What the planner adds in value to your plan is an understanding of how the various parts fit together. You can make great strides in this knowledge by doing your homework here. Then if you wish seek professional help.