Steps to financial planning
Financial planning is a comprehensive and ongoing process that can help you achieve your goals in life—both personal and financial.
1. Establish and define the client-advisor relationship
- At your first meeting with your I-R Advisor, you will learn about the services we provide, what to expect from the financial planning process, how your I-R Advisor is paid as well as any fees and charges. You and your I-R Advisor will also determine how decisions will be made and how frequently you will meet.
2. Gather information, discuss goals and objectives
- You will be asked to gather all your personal data and financial information so that your I-R Advisor can see where you stand. By examining your cash flow, net worth, insurance and other financial areas, you can discuss your goals, objectives, risk tolerance and time frame.
3. Analyze your overall financial situation
- Once you’ve determined your financial goals and objectives, your I-R Advisor will conduct a thorough analysis of your finances. Using advanced tools and resources, the analysis will show whether your goals and objectives are realistic and can be met under current circumstances. It will also help determine whether you will need to consult with other I-R specialists, such as an I-R Estate and Trust Advisor or I-R Insurance Consultant.
4. Discuss the plan with your I-R Advisor
- Your I-R Advisor will develop your personal financial plan, make recommendations and discuss them with you so that you fully understand them. If the plan involves other I-R specialists, they will present the parts specific to their expertise. The financial plan could include creating new habits or considering new strategies or services. Your I-R Advisor will make note of any concerns you may have, and revise recommendations as appropriate.
5. Put your plan into action
- Once you have agreed to the recommendations, it’s time to put your plan into action. Your I-R Advisor will help you prioritize what needs to be done, complete any relevant paperwork, and coordinate meetings with other I-R specialists.
6. Monitor your plan
- Financial planning is an ongoing process. Together, you and your I-R Advisor can establish how frequently you should meet to review and assess your progress. The regular meetings will help identify any changes in your circumstances or objectives that would require changes to your financial plan.
Components of a financial plan
What can you expect from your Triple I-R Advisor? What are your responsibilities? Clear expectations on both sides lead to a productive relationship and a positive outcome.
Your advisor’s responsibilities to you
- Clear communication
- Answer any questions you may have
- Confirm your expectations and investment needs
- Report to you regularly
- Respond quickly to your questions
- High standards of ethics and conduct
- Act in your best interests
- Discuss the risks associated with recommendations
- Explain how compensation works
- Identify opportunities and make appropriate recommendations
- Observe and adjust strategy if there are problem areas
- Provide alternatives with pros and cons
- Recommend other professionals/experts
- Your responsibilities to your advisor
- Ask questions to ensure you understand
- Disclose the information required
- Be honest with yourself and your advisor about your risk tolerance
- Keep your advisor up to date on your situation
- Respond quickly
- Go to your meetings prepared
- Be committed to achieving your goals
- Stay informed about your investments
- Keep documentation
- Advisor qualifications
- If you work with a financial advisor whose expertise you trust, you will likely feel more confident about reaching your financial goals.
- All advisors must also meet I-R regulatory requirements to offer great services.
Components of a Financial Plan
- Financial management considers your short- and long-term goals for income, expenses, debt reduction and savings. Your I-R Advisor will analyze your financial goals and desired lifestyle and assess how much you can save. Together, you can establish a cash flow strategy for today while building wealth for tomorrow.
- Tax planning has a simple goal: minimize your tax burden so you can build your wealth faster. Along with your tax and legal professionals, your I-R Advisor can help you find ways to minimize your taxes through various accounts, and help you evaluate different strategies, including medical practice incorporation and estate planning.
- Asset management relates to your investments and employing strategies to optimize your portfolio. Your I-R Advisor will ensure that your investments are consistent with your goals, time horizon and risk tolerance. Over the course of your life, these strategies may change as your personal circumstances and economic conditions change.
- Retirement planning helps you set a goal for when you want to retire and your income and lifestyle objectives during retirement. Your I-R Advisor can determine if your current savings are on track and provide guidance on strategies to help achieve those goals. It is important to start planning early and revisit your retirement plan on a regular basis
- Risk management is about protecting yourself and your dependents financially in the case of death, disability or critical illness. Through the effective use of insurance, you can ensure that your financial obligations can be met and your family’s standard of living can be maintained, if something unfortunate were to happen.
- Estate planning ensures that you control how your estate is distributed when you die. An updated will and power of attorney help to provide instructions stating your wishes. Your I-R Advisor can help you minimize the tax associated with your estate while maximizing a tax-efficient transfer of wealth to your beneficiaries, including charities.