Financial review

Financial Review

A financial review is a complete review of a client’s financial needs by his or her financial advisor. It goes beyond monthly household budgeting, a full financial review looks at all aspects of the client’s financial well being. The outcome of the financial review should be a plan or list of actions to be taken to ensure the identified needs are addressed.

Our Financial Planning Process

1. Identification of financial needs & client risk profile 

This will occur during the initial financial review session with your financial advisor. You may feel you already know what your needs are, however during a financial review, all aspects of your finances are reviewed, some of which you may not have considered previously. You will also need to determine with your advisor, your investment risk profile.

2. Prioritise Needs 

You will need to discuss & agree with your advisor what financial needs should be addressed first. Typically protection needs take priority over wealth generation needs and pension needs take preference over pre retirement wealth generation.

3. Assessment & Quantification of needs 

Following the initial financial review, your financial advisor will assess the information provided during the review meeting. Your advisor will make calculations for the various identified needs. For example; calculation of the level of protection cover required, the required level of pension funding and perhaps the required savings levels to achieve a target lump sum.

4. Recommendations 

At a follow up meeting, your advisor will make recommendations in relation to your prioritised financial needs. Your financial advisor will explain to you the recommended types of products and the reasons why those products are most suitable for fulfilling your needs.  Your advisor will also step through the values calculated; for protection cover, pension funding; savings and other needs. The recommendations may also include specific products which your advisor may feel are most suitable for you.
Investment recommendations will also explain the level of risk associated with products recommended. The risk level should match your investment risk profile.

5. Review the financial plan 

It is important to take the necessary steps to carry out the recommendations outlined in the financial plan. Annual meetings with your advisor will ensure your financial plan is reviewed. You will find that your needs will change over time and you may need to make change to your original plan.

If you have never had a financial review, call us today to schedule a meeting.