Financial Planning Principles Flashcards
What happens in the first meeting with the client
The financial planner will explain the services available and their approach to meeting the client’s needs and expectations.
what is the name of the documented outcome of the agreement in the first meeting called
It is called the scope of engagement or terms of engagement
what is explain in the first meeting
The process terms and financial concepts in simple terms
What are the terms of engagement
the engagement letters set the terms of engagement and describe the services offered
What are the standard components of an engagement letter
The range of financial planning services and products being offered
Limitations and constraints
the goal, need and objectives of the client are recorded
identify responsibilities for formulating, implementing the plan and monitoring the plan
indicate the required data to be gathered and provided
the financial planner compensations arrangements
How is the relationship formulized between client and provider
It is formalized bu the signign of the scope of engagement
What is an additional document that may be provided with the engagement letter?
Firm privacy policy, conflicts of interest, referral compensations agreement, and other important information
What is Financial Planning
Financial planning is a structured process with steps that are intended to be repeated throughout the client and financial planner’s relationship
What are the steps of the financial planing
Understanding the client personal and financial circumstances
identifying and selecting goals
analyzing the client current course of action and alternative courses
developing the financial planning recommendation
Presenting the financial planning recommendation
implementing the financial planning recommendation
monitoring progress and updating
