Do you want to make a financial plan and ask yourself, "What does a financial advisor do?" Well, there is an internationally recognized and accepted process that financial advisors follow when meeting clients. This is especially true for those who hold a Certified financial assessment degree.
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The financial planning process consists of the following steps:-
1. Collect customer data, including goals and objectives:- Planners need to understand where you are financially at the moment, what your current situation is, and ask you for specific information about your financial situation. You will be asked about your goals, your time frame for investing and achieving your goals, and your risk tolerance will be assessed.
2. Analyze and evaluate:- The information you provide will be analyzed in relation to your current situation and the advisor will determine what actions you need to take to achieve your goals. You will be informed about the problem areas and what actions need to be taken to fix them.
3. Develop and present recommendations:- The financial planner creates a written recommendation plan that will meet your goals based on the information you provide. These recommendations should be explained to you at the next meeting so that you can better understand them.
4. Implementation:- Once you are satisfied with the recommendations, you and your consultant will agree on the implementation. There may be periods of time when the consultant coordinates certain processes with you and other professionals, eg. an attorney to prepare a will for you.