1st meeting Flashcards
What are the 6 stages of financial planning?
- Stage 1: Establish and define the client/financial planner relationship
- Stage 2: Gather client data, quantify and qualify their financial objectives
- Stage 3: Analyse and evaluate the client’s financial status
- Stage 4: Develop and present the financial plan
- Stage 5: Implement any financial planning recommendations
- Stage 6: Monitor and review the financial plan
As per FCA requirements, what must be disclosed to clients at the 1st meeting? [2]
- Details of the service(s) provided
- and the associated costs
To be an IFA, what must the adviser have access to?
A product range that is sufficiently diverse with regard to their type and issuer or provider to ensure that the couple’s investment objectives can be suitably met.
A restricted adviser can only recommend what? [3]
- certain products
- certain product providers
- or both.
This means that they may only offer products from one company, or just one type of product.
Name 2 key aims of the fact-find.
- establish a client’s current financial position
- along with their financial hopes and aspirations
Name 3 examples of why expenditure might change in retirement.
- mortgage paid
- reduced saving
- more holidays
- no longer use of company car
Name 4 options if a shortfall is identified in achieving an objective.
- save more now (if affordable)
- decrease retirement target income
- defer retirement age
- take higher risk for higher growth
- downsize house to release cash
Financial advisers will estimate future income tax liability based on what?
Projected taxable incomes, including taxable income from savings.
What is a limitation of lifetime cashflow forecasts?
They rely on assumptions.
Name 3 potential assumptions used in cashflow forecasts.
- longevity of clients
- income levels & rates of increase
- expenditure levels and inflation rate
