Financial Advice Process

The Financial advice process is used to obtain as much information as possible to be able to provide the best possible advice regarding your current situation. This is the first step in assisting your Wealth advisor in tailoring your retirement plan.

Step 1: Determine Your Current Financial Situation

In this first step of the financial planning process, you will determine your current financial situation with regards to income, savings, living expenses, and debts. Preparing a list of current asset and liability balances, together with amounts spent for various items, will provide you with a foundation for your future financial planning requirements.

Step 2: Develop Financial Goals

In this step we establish how you need your capital to work for you. This could be income generation, capital preservation, or savings for future expenses.

The goal in this step is to assist you in assessing whether you will achieve your financial freedom.

Step 3: Analysing Courses of Action

Analysing and developing the course of action is crucial for making good decisions. Although many factors will influence the outcomes, possible courses of action usually fall into these categories:

  • Continue the same course of action.
  • Expand the current situation.
  • Change the current situation.
  • Take a new course of action.

Step 4: Evaluate Alternatives

Here we discuss the plan and the actions that need to be taken in order to achieve the goals and needs. If any adjustments need to be made, now is the time.

Step 5:  Implement a Financial Action Plan

Implementation is just as important as the steps before. In order to achieve the goals, with the least amount of impact on you or your finances, we need to take great care here. This is where we can reduce tax, or prevent unnecessary costs.

Step 6: Re-evaluate and Revise Your Plan

Financial planning is a dynamic process that does not end when you take a particular action. You need to regularly assess your financial decisions, and any changes in your personal, social, and economic environment which may require more frequent assessments.

When life events affect your financial needs, this financial planning process will provide a vehicle for adapting to those changes. Regularly reviewing this decision-making process will help you make priority adjustments that will bring your financial goals and activities in line with your current life situation.

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