Singapore Financial Planning And Life Insurance Tips

The 6 Step Financial Planning Process.

In carrying out the planning function, the FA will be guided by a standard 6-step financial planning process to create a detailed strategy tailored to your specific situation and goals. The 6 steps are:

1. Establishing and defining the client-planner relationship

The FA should clearly explain or document the services to be provided to you and define both his/her and your responsibilities. The FA should explain fully how he/she will be paid and by whom. You and the FA should agree on how long the professional relationship should last and on how decisions will be made.

2. Gathering client data, including goals

The FA should ask for information about your financial situation. You and the FA should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The FA should gather all the necessary documents before giving you the advice you need.

3. Analyzing and evaluating your financial status

The FA should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.

4. Developing and presenting financial planning recommendations and/or alternatives

The FA should offer financial planning recommendations that address your goals, based on the information you provide. He/she should go over the recommendations with you to help you understand them so that you can make better informed decisions. The FA should also listen to your concerns and revise the recommendations as appropriate.

5. Implementing the financial planning recommendations

You and the FA should agree on how the recommendations will be carried out. The FA may carry out the recommendations or serve as your "coach", coordinating the whole process with you and other professionals such as lawyers or stockbrokers.

6. Monitoring the financial planning recommendations

You and the FA should agree on who will monitor your progress towards your financial goals. If your FA is in charge of the process, he/she should report to you periodically to review your situation and adjust the recommendations, if needed, as your life changes.

Terence Tan is a Singapore-based Entrepreneur and Speaker who has spoken on International Seminars in many countries including Singapore, Malaysia, Australia, UK, Mexico, USA, Japan and India.

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