Statement of Financial Position

Comprehensive Statement of Financial Position

As many clients have complicated financial arrangements, a key part of the initial engagement is to create an accurate statement of the client’s current financial position.

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The Statement of Financial Position provides a complete view of the client’s financial affairs and objectives at the start of the advice process. It is a structured process from the initial contact, through collecting relevant data, and preparing for the preliminary planning and strategy meeting.

The Statement is also illustrated in a ‘Circle Chart’ infographic to highlight the key attributes of the client’s financial position and the ownership and liabilities of assets.

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.

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The benefits developing the Statement for the client and their family are:

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Documents the full financial position of the client in terms of their assets, income, ownership structures, obligations, and liabilities.

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Provides clarity for the strategies and advice required to achieve objectives.

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Clients gain an appreciation of where they are relative to where they want to be. The advice process creates their road map to their financial destination.

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The Statement is updated annually or as required to keep clients on track and to respond to changes in circumstances.

EWK Private Wealth understands how dynamic the financial affairs of our clients can be. We have long-term relationships with clients to ensure they have a trusted adviser to keep them on track and guide them through the good and the bad.

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The process for gathering information for the Statement is designed to:

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Help clients get all their relevant financial information together.

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Be aware of what is involved with the advice process, clarify what they want to achieve, and understand how the first meeting is relevant to them.

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It also determines if the client is suited to the EWK service offering. This is a filtering process for both the prospective client and EWK.

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At the same time EWK recognises that there are exceptions to having all the information available, for example, the availability of family members, particularly the elderly, and business owners and professionals who have limited time to gather their materials and require support with this process.

The Statement of Financial Position is the starting point for implementing the client’s goals. It ensures EWK has a clear understanding of the client’s current position to optimise the strategies and actions to achieve their goals and ideal lifestyle.