Shadforth Financial Group

The Financial Planning Process explained

Shadforth Financial Group is a principal member of the Financial Planning Association of Australia. Our approach to securing your financial future is in keeping with the FPA's recognised six-step financial planning process:*

Step 1 - Gathering the Data

Your first meeting is where your financial adviser gains an understanding of your present financial position, your objectives and needs, and the types of investments required to meet your needs.

Step 2 - Identifying your goals

An important part of the financial planning process is to clearly identify your financial goals and objectives. Considerations may include:

• The income and asset levels you are aiming to achieve
• Future education expenses
• Upgrading the family home
• Protecting your income through appropriate income protection, and death and disability cover
• Accumulating assets to a defined level by a certain date
• Maintaining an agreed level of investment accessibility and flexibility
• Estate planning

Step 3 - Identifying your Financial Issues

Your financial adviser compares your financial situation with your goals to determine the appropriate strategies necessary to achieve them. This will form the foundations of your financial plan.

Step 4 - Preparing your Financial Plan

Having identified your goals and objectives and assessed your overall financial situation, your financial adviser will formulate an overall strategy. Taking into account your attitude towards risk, your adviser develops recommendations designed to achieve your desired goals.

Step 5 - Implementing Your Financial Plan

Once the plan is agreed, your financial adviser can implement it on your behalf, or assist you with the process.

Step 6 - Reviewing Your Plan

An important part of the process is to regularly review the performance of your financial plan with your adviser to ensure it is living up to your expectations. Your ongoing relationship with your financial adviser may involve:

• Tracking your investments
• Reviewing your progress in achieving your financial goals, and revising strategies if required
• Valuing and reviewing your investment portfolios
• Informing you of new opportunities as they emerge
• Ongoing communications
• Ongoing consultations as required

* "Advice worth taking" booklet - produced by the Financial Planning Association of Australia Limited.