Financial Planning Process- By Varun Chaudhry

Financial Planning consists of four steps:

Initial Meeting: This consist of sitting down with someone who is interested in making long term plans for their future financial security.  We discuss your goals and objectives as they relate to you and your family. We will also go over your current financial situation and see how does that look as compared to what the goals are. During this step we collect all your investment statements, existing insurance policies (if applicable) & any other relevant material.

Analysis of the information provided: In this step, we review and analyze the provided information.  This consists of thorough review of all the statements and information collected in the first step. We make sure that the investments are doing what they are supposed to do. In other words, if they are providing you the returns that you need to meet your financial goals. Also, if the insurance policies that you may have are right for you as no every insurance product is for everyone. Different needs have to be catered by different products and services.

Creation of Financial Plan: After the thorough review of all the information we prepare alternative plans (if required) based on your objectives and goals, and we meet again to implement those. This consists of changing the investments if required; changing the insurance policies if required or if recommending some other protection plans in case required by the clients. We also make sure that your investments are not too risky in context to your risk tolerance.

Regular Review: Periodic review is as crucial as the creation of perfect financial plan as circumstances change in life, like marriage, birth of child, job changes, etc. Your plan must remain consistent with your changing needs. We perform minimum one review a year and sometimes more if needed. This is necessary to see if client has any specific financial request that needs to be accomplished, such as investments including RRSP (Registered Retirement Savings Plan), TFSA (Tax Free Savings Plan), RDSP (Registered Disability Savings Plan), RESP’s (Registered Educations Savings Plan), etc.