Business Administration - Financial Planning RFC230 Lecture Notes - Lecture 1: Life Insurance, Qualitative Property
19 Jan 2017
School
Professor
Document Summary
An fp should not use estimates; an fp should ask to see tax returns, It is essential that clients provide all relevant data. insurance policies, etc. , if it is relevant to the financial planning engagement. A client may be hesitant to disclose this much information. Co(cid:374)se(cid:395)ue(cid:374)tly, a(cid:374) fp (cid:373)ust (cid:449)i(cid:374) the (cid:272)lie(cid:374)t"s t(cid:396)ust (cid:271)y: being professional and empathetic. Acknowledge the sensitive nature of the information: assure them that it will be kept confidential, explain why it is required (identify and prioritize goals; assess the (cid:272)lie(cid:374)t"s fi(cid:374)a(cid:374)(cid:272)ial situatio(cid:374)s i(cid:374) o(cid:396)de(cid:396) to p(cid:396)o(cid:448)ide the (cid:271)est possible solutions. Illustrate how certain information may affect recommendations. Personal finances: employment income (t4s, expenditures (credit card statements, bank statements, asset values, less liabilities. Investment accounts, real estate, etc: employment benefits. Pension and equity plans, health benefits, disability, life insurance: insurance policies, legal documents (wills, power of attorney, pre-nupts, titles to property and investment accounts) Qualitative data is used to identify and prioritize client goals.
