Listed here are some of the key points of a “Financial Planning Engagement”.
What do you get?
This engagement shall be signed for a period of one year. It includes
· Comprehensive Financial Plan, prepared & delivered usually in about 20-25 days
· Ongoing consulting support for the entire 12 months period
What is covered in the Financial Plan?
· Analysis of your current situation
Personal, Professional, Financial and Health covering Financial aspects like Income, Expenses, Assets, Liabilities, Investments, Insurance (life and non life), Cash Flows and Tax liabilities
This will bring out interdependence of all the aspects.
· Qualifying and quantifying your goals and aspirations
List down and quantify goals and aspirations: Children education, Marriage expenditure of your children, employment change, start up, retirement, charity, transfer of wealth, other high value purchases, vacations and the like
This will help you identify the gaps in the present situation.
· Scenario Analysis
Analyze & forecast future scenarios, both favorable and unfavorable, expenses and investments streams, potential risks, portfolio breakup
This will help you take a realistic look of finances both current and the future.
· Action Plan along with product recommendations
Engagement Process
Please note that it is a highly interactive exercise where your participation and inputs are as necessary & critical as my analysis and recommendations.
· Signing of the engagement letter and Input gathering: In person (preferred)/ over skype (3-4 hours)
§ Letter covers scope of work, deliverables, timelines and payment details
· Follow-ups through mails/ calls/ Skype: As & when required
· Handing over the financial plan and required discussion: In person (preferred)/ over skype (2 hours)
Ø It is advisable that all the key people of the family participate in these discussions. More qualified and detailed the inputs, better is the scope and usefulness of the plan.
Ø You will be expected to share photocopy of all the relevant documents as required for the analysis. List of the documents will be shared with you.
All the artifacts, facts & figures shared by you will be kept strictly confidential and will be returned to you after the engagement is over.
What is NOT included?
· Execution/ administrative support of the plan.
· Sales pitch of any financial products, there is no tie-up with any financial services/ products company
Professional Fees
Financial Planning engagement is a FEE ONLY service.
The Professional fee is a function of various aspects of one’s life like financial, personal and professional factors and inter-dependency/ complexity involved in it. Typically it will depend on the number of income streams, insurance & investment options, short term & long term goals and the likes.
The fee varies between INR 19,999/- to INR 35,000/-
There is NO association with any financial services/ products company and nothing is earned as “commissions” and “referral fees”.
How a Fee Only service can benefit you?
A ‘Fee Only’ service assures you of absolutely unbiased recommendations and advice in your Financial Plan. This compensation model is:
· Easy to understand as the client knows the fees upfront
· Provides you peace of mind as there are no hidden charges
· Free from all conflicts of interest like commission on product recommendations
· Gives you full freedom of implementation of plan’s recommendations.
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