This is a structured approach to ensure each client receive a comprehensive review of their financial position and has the strategies to achieve their goals moving forward.
It creates the foundation on which the overall advice strategy is developed, and actions taken to strengthen the financial position of the client to achieve their goals.
For new clients the step-by-step process for optimising their financial position is as follows:
Statement of financial position
- A complete global view of the client’s financial affairs at the start of the advice process
- Documents full financial position of assets, income, and liabilities.
- Identify tax and ownership issues with assets.
Set goals
- Establish a clear set of lifestyle and financial goals.
- Determine the scope of the advice.
Advice formulation
- Establish a plan to achieve goals and typically, fund lifestyle and/or retirement.
- Determine and plan the transition of wealth to next generation for those important to the client. Involve beneficiaries of the estate. who tend to become clients along the way.
- Determine tax liabilities.
- Develop strategies to reduce or remove unnecessary tax liabilities.
Implementation
- • Sort out complicated financial structures and arrangements.
- Documents full financial position of assets, income, and liabilities.
- • Implement agreed strategies.