Conducting a full financial planning engagement with a client

Full Answer Section

Reviewing Existing Information

• The financial planning team gathers and reviews all available information about Jack Ryan, including:

  • Personal information (age, occupation, marital status, dependents)
  • Financial information (assets, liabilities, income, expenses, debts)
  • Risk tolerance and investment goals

• This information is used to gain a preliminary understanding of Jack's financial situation and prepare for the initial meeting.

Discovery Phase

Establishing Rapport and Setting Expectations

• The financial planning team greets Jack warmly and thanks him for taking the time to meet with them.

• The team briefly introduces themselves and their roles in the financial planning process.

• The team explains the purpose of the meeting and what Jack can expect from the financial planning process.

• The team sets clear expectations for the meeting, including the confidentiality of information and the focus on Jack's goals and objectives.

Gathering Detailed Financial Information

• The team engages Jack in a comprehensive discussion of his financial situation, using an open-ended approach to gather detailed information about his:

  • Income and expenses
  • Assets and liabilities
  • Investment goals and risk tolerance
  • Retirement plans
  • Insurance coverage
  • Estate planning considerations

• The team actively listens to Jack's responses and asks clarifying questions to ensure a thorough understanding of his financial circumstances.

• The team documents all relevant information accurately and systematically.

Identifying Financial Goals and Concerns

• The team works with Jack to identify his short-term, mid-term, and long-term financial goals.

• The team explores Jack's financial concerns and challenges, such as debt management, saving for retirement, and college planning for his children.

• The team helps Jack prioritize his goals and objectives, considering his current financial situation and risk tolerance.

Analysis Phase

Assessing Financial Situation and Identifying Gaps

• The financial planning team analyzes Jack's financial information to assess his overall financial health.

• The team identifies any gaps or inconsistencies in Jack's financial plan, such as insufficient savings for retirement or inadequate insurance coverage.

• The team evaluates Jack's risk tolerance and investment strategy to ensure they align with his goals and objectives.

Developing Recommendations and Strategies

• Based on the analysis, the financial planning team develops personalized recommendations and strategies tailored to Jack's specific needs and goals.

• The team considers various financial planning strategies, such as:

  • Debt management strategies
  • Tax planning strategies
  • Investment strategies
  • Retirement planning strategies
  • Insurance planning strategies
  • Estate planning strategies

• The team prioritizes the recommendations based on their potential impact on Jack's financial situation and his overall well-being.

Recommendations Phase

Presenting Recommendations and Strategies

• The financial planning team presents their recommendations to Jack in a clear, concise, and easy-to-understand manner.

• The team uses visual aids, such as charts and graphs, to illustrate the potential impact of the recommendations on Jack's financial situation.

• The team encourages Jack to ask questions and provides detailed explanations to address any concerns or uncertainties.

Motivating the Client to Take Action

• The financial planning team emphasizes the benefits of implementing the recommended strategies, highlighting the positive impact on Jack's financial future.

• The team addresses any potential objections or concerns raised by Jack, providing reassurance and addressing his apprehensions.

• The team encourages Jack to take action and provides clear next steps, including the process for implementing the recommendations and ongoing financial planning support.

Follow-up and Ongoing Support

• The financial planning team schedules a follow-up meeting with Jack to review the implementation of the recommendations and address any questions or concerns.

• The team provides ongoing financial planning support to Jack, monitoring his progress and making adjustments as needed.

• The team maintains open communication with Jack, encouraging him to reach out with any questions or concerns that may arise.

Sample Answer

Financial Planning Engagement with Jack Ryan

Pre-Discovery Phase

Initial Contact and Scheduling

• Franklin, the personal banker, contacts Jack Ryan to introduce the financial planning team and discuss the opportunity for a complimentary financial planning consultation.

• Franklin provides Jack with contact information for the financial planning team and suggests a few potential dates and times for the consultation.