1. Establish the Client-Planner engagement 2. Gather client data and determine your goals and expectations (interview the person next to you and get the top 3) 3. Clarify your present financial status and identify any problem areas and opportunities 4. Develop and present the financial plan 5. Implement your financial plan 6. Monitor the financial plan

 The planner should: Explain issues and concepts related to the overall financial planning process that are appropriate to the client (you). Explains the services and the process of planning and documentation. Clarify your responsibilities as a client Clarify the Planners responsibilities to the client including, how they will be compensated.

 The planner and client should: Discuss the scope of the client/planner engagement. Agree on how decisions will be made.

 The planner should: Obtain information about your financial resources and obligations through interviews or questionnaires. Gather all the necessary documents before giving you the advice you need.

 The planner and client should: Define your personal and financial goals, needs and priorities. Investigate the clients values, preferences. financial outlook and desired results as they relate to your financial goals, needs and priorities.

 The planner should: Analyze your information to asses your current financial situation. (cash flow, net worth, tax projection, tax problems, history of being audited,etc.)

 capital needs  risk management  Investments  Taxation  retirement planning  employee benefits  estate planning  and any special needs (health, education etc.)

 The planner should: Develop and prepare a financial plan tailored to meet your unique values, goals, objectives, temperament and risk tolerance, while providing projections and recommendations. Present the Plan to you and establish an appropriate review strategy / cycle / frequency.

 The planner and client should: Work together to ensure that the plan meets your goals and objectives.

 The planner should: Assist you in implementing your choice of items that were discussed. This may involve coordinating contacts with other professionals such as: 1. Accountants 2. Lawyers 3. Insurance brokers 4. Stock brokers.

 Together, the planner and client should: Agree on who will monitor, evaluate and determine whether the plan is helping you progress toward your goals.  The planner should (if they are in charge of the monitoring process): Contact the client to review progress and make adjustments to the plan as required.

 The review should include: Discussion about any changes in your financial goals or financial resources. A review and evaluation of the impact of changing tax laws and economic circumstances. A change in life circumstances (children, divorce, health, etc).

“Managing personal finances without a well-defined goals is like driving a car without knowing where you want to go “ you will never arrive ”. Agree/Disagree? Why?

 Each of the steps in the financial planning process is critical to an effective financial plan.  Goal setting is the foundation of a relevant financial plan.  It’s critical to be able to distinguish between financial desires and financial goals.  Limited resources result in the need to work with the client to prioritize goals.

Page 129 Canadian Financial Institutions to the end of the summary on Page 134.