The term “comprehensive financial planning” is one of the IAFP’s core values, embedded in its purpose and enshrined in its by-laws.
Comprehensive financial planning is a process defined by the Professional Standards of Practice for R.F.P.s. This process does not necessarily require the completion of a comprehensive financial plan during each financial planning engagement.
To ensure Registered Financial Planners are always acting in the client’s best interest, each R.F.P.® must take all relevant personal and financial data, goals and concerns into consideration. An R.F.P.® may provide a modular planning service during a particular financial planning engagement, as long as the written plan is prepared within the context of comprehensive fact-finding. In other words, a written plan which does not contain all elements of a comprehensive financial plan report must still identify and inform the client of any other issue of concern that should be dealt with by the client which has come to the attention of the R.F.P.® while reviewing the facts of the case.
At the core of comprehensive financial planning, is the “Six-Step Process”.
A comprehensive financial plan is a written document that covers the complete spectrum of financial issues:
Following the six-step process, a comprehensive financial plan will include the following:
(i) Net Worth
(ii) Cash Flow
(iii) Investment Planning
(iv) Retirement Planning
(v) Tax Planning
(vi) Insurance Planning
(vii) Estate Planning
(viii) Special Needs (when appropriate)
A well-designed financial plan will help you reach your personal financial goals and objectives, and give you a greater sense of security.
How do I know whether I need cash and debt planning?
(i) Is there too much month and not enough money?
(ii) Are you finding it difficult to make ends meet?
A Professional Financial Planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need income tax planning?
(i) Are you paying too much tax?
In 2003, tax freedom day arrived on June 29th (to be confirmed). According to the Fraser Institute, up until that day, every dollar we earned went to pay one form of tax or another.
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need investment planning?
(i) Are you reeling from historically down markets over the past few years?
(ii) Are you retired and finding your income needs exceed your investment returns?
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need retirement and financial planning?
(i) Do you have a target retirement goal, such as “Freedom 55”; if so, will your retirement income match your retirement goals?
(ii) Has company downsizing resulted in earlier retirement than you were planning?
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need insurance planning?
(i) Are you certain you have sufficient life insurance in place to provide for your dependents?
(ii) Do you think you are over-insured?
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need estate planning?
(i) Do you have an up-to-date Will?
(ii) Do you have an Enduring Power of Attorney that appoints an appropriate person to manage your finances in the event of incapacity, such as Alzheimer’s?
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
How do I know whether I need an ad hoc consultation?
(i) I have an immediate and specific need for advice, such as choosing a pension option or deciding on accepting an early retirement package.
A professional financial planner can help. R.F.P.s must adhere to Professional Practice Standards to ensure that you are receiving objective, unbiased and comprehensive advice.
Last updated: 16 Jan 2014 2:41 PM
There are a lot of people calling themselves financial planners, but an R.F.P. has the specialization and qualifications to ensure you are getting the most comprehensive financial plan available. Find one near you.
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