FINANCIAL PLANNING
What is Financial Planning?
Financial planning is the process of wisely managing one’s finances to achieve certain goals and dreams, while at the same time helping negotiate the financial barriers that inevitably arise in every stage of life. The financial planning profession exists to help people make those financial decisions and achieve their life goals. Financial Planning mainly consists of the following steps:
Data acquisition
The profound and very detailed conversation with the customer
is the first and most important step in any planning strategy. The
financial planner has to collect every single information of his
client that can an without any doubt will have effect on his
financial and personal situation. He holds down the fortune
positions and liabilities of his client, his complete cash-flow and
tax situation such as the legal and optional insurance situation.
Further more the financial planner keeps hold of the clients
particular purposes and aspirations. Existing contracts, such as a
last will and testament, are comprehended and recorded.
Analysis
By connecting the acquired information, the financial planner
creates the foundation for a complete analysis of the clients
liquidity, wealth, tax, yield and risk situation.
Optimisation
The simulation generally reveals considerable discrepancies
between the defined ideals and the reality; this comparison of
target and actual situation is the point of departure for the
financial planner who develops and presents objective and tangible
proposals of optimisation to his client. Both the financial planner
and the client have now the ability to decide which goals are
primarily to be achieved. According to the clients’ priorities, the
goals can be improvement of the yield of fortune risk reduction,
improvement of the insurance situation, etc.
The realisation
The developed optimisation sanctions are co-ordinated with the
client and his tax, insurance and/or legal advisor. These sanctions
can be realised either by means of private (testament) or even
corporate agreements/contracts.
Update
A financial plan is to be considered as a "snapshot" and
should regularly be updated, as it represents an individual service
in due respect of the clients’ phase of life. An alteration of
personal matters, for example marriage (or divorce) or a strove for
independance, for example, bear enormous consequences, not only
personally, but above all financially. In addition to altered
personal ideals, the modification of law or taxation in the specific
country and subject may cause considerable variance between the
initial financial plan and the new reality. Even sudden alteration
of the fortune and wealth situation of the client may be a reason to
adjust the financial plan.
- a healthy and long term customer relationship
- an improved knowledge over the customers wealth and fortune, but also private life
- a gain in expertise for a demanding clientele
- business development and customer acquisition
- cross selling possibilities
- improvement of income through the additional advisory fee
The advantage for the clients employing an estate planner
- a safe and targeted fortune and wealth management
- an overview over the actual state of fortune
- individual problem solving and customised optimisation strategy
- co-ordination of personal and corporate matters
- complete advisory service from one single source
- improvement of the yield of fortune and risk management
