RSM230H1 Chapter Notes - Chapter 26: Life-Cycle Assessment, Disposable And Discretionary Income, Risk Aversion
Document Summary
Financial planning approach to managing wealth has benefits for both clients and ias. Ias call on specialists and integrates their expert analysis, findings and recommendations into a coherent wealth plan to meet client"s needs. Involves the analysis of client"s age, wealth, career, marital status, taxation status, estate considerations, risk tolerance, investment objectives, legal concerns. Four objectives must be considered for a plan to be created: Must accommodate changes in lifestyle and level of income. Should provide for not only the necessities but also some luxuries or rewards. Interview the client - establish the client-advisor engagement. Determine issues and problems and the solution through a financial plan. Formalize the relationship with a letter of engagement or formal contract. Input from other professionals (prepare a list of instructions: constraints, objectives) Implement or co-ordinate the implementation of the recommendations. Client should review plan, goals, objectives and risk tolerance levels. Ia must ensure that the client understands each product and potential risks/rewards.
