Do you Need a Financial Plan?
By Max ValaVanis, CFP©, CFS
I’m currently going through the dreadful process of painting the interior of my house, and the multitude of greens on the color palette astounds me. When I proudly walked into the store, I was under the impression that I could effortlessly select a shade of green and leave with the utmost confidence that it was the best for me. Unfortunately, I sadly admit that this was not the case and that there is a comprehensive and ongoing process to choosing my perfect color.
When selecting a financial advisor, the same is true. Financial Planning is not simple or solved in an hour. Instead, it is a long, comprehensive journey that lasts as long as the professional relationship does. The CFP© Board has developed a 7-step process to best serve clients like you. As Certified Financial Planners™, we at ValaVanis Financial must adhere to this complete 7-step process for all Financial Planning relationships.
The genesis of the process is understanding a client’s financial circumstances. Just as I shouldn’t march into a paint store looking for my shade of green before setting foot into my house, you shouldn’t receive financial advice without an advisor understanding your situation. Afterward, the client and advisor should identify the goals of the relationship. These initial two pillars of the financial process should be completed in the first meeting. Why leave the meeting without receiving financial advice? As a Certified Financial Planner™, I must thoroughly complete the following two steps of the process, which often takes time. The advisor initially analyzes the information and data and then develops financial planning recommendations.
After the advisor completes these two steps with a fine-tooth comb, the client receives their financial plan. In this meeting, the advisor presents recommendations and explains how they were determined. The client decides if they agree with the plan. If both parties believe the relationship works, the implementation phase begins.
As time passes, one of the most critical steps in the financial process becomes ever-present: the monitoring stage. Once the recommendations are implemented, the advisor’s job has just begun. They must actively review and update the recommendations and plan when necessary. Usually, this entails (at a minimum) annual meetings and collective adjustments from both the advisor and client.
Similar to painting the walls in your house, taking time and having patience may be the difference between a successful and a poor financial plan. Using a Certified Financial Planner™ could benefit your financial health. Whether you are planning for retirement, higher education, or simply leaving a legacy to your heirs, CFP© practitioners can utilize the financial planning process to map out a plan for you. If you are interested in learning more about the financial planning process and how it may help you, give our office a call at (321) 956-7072. We offer a no-obligation, free meeting to all readers of the Senior Scene. I hope to see you soon.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). ValaVanis Financial and JWC/JWCA are unaffiliated entities.