You may be confused about how to distinguish financial planning from other kinds of financial advice. To help you understand what to expect from the financial planning process, CFP practitioners follow certain standards-called Financial Planning Practice Standards-when providing financial planning advice. Practice Standards describe the process you should reasonably expect a financial planner to use during a financial planning engagement. These standards are based on a six-step financial planning process, documented through CFP Board research.

The Financial Planning Process

• Establishing and defining the client-partner relationship.
• Gathering client data including goals.
• Analyzing and evaluating the client's financial status.
• Developing and presenting financial planning recommendations and/or                  alternatives.
• Implementing the financial planning recommendations.
• Monitoring the financial planning recommendations.

When providing financial planning advice, a CFP practitioner will define the scope of the work she or he will do with you, and clearly explain and document the services she or he will provide, the method of compensation and other relevant information. CFP practitioners will work with you to determine your personal and financial goals, needs and priorities; understand your time frame for achieving results; and discuss your tolerance for financial risk. Practice standards also require the CFP practitioner to gather all necessary financial information about you when developing your personal financial plan.

Next: A Matter Of Trust

 SAI Financial Services Inc.

 315 South Wheaton Avenue 

 Wheaton Illinois 60187-5209

 info@saifinancial.com

 Please contact our webmaster with questions or comments.

 Copyright 2001 SAI Financial Services Inc. All rights reserved.