Our Process
How
We Do What We Do
We all know from
our doctors that we must take care of ourselves -- don't smoke, do
eat fresh vegetables, fish and fruit daily, do exercise three
times a week, he says -- or our bodies will deteriorate
faster than normal. This stewardship of our health may
prolong our lives.
Likewise, financial
planning is the disciplined yet flexible stewardship of our "serious"
money. It is meant, of course, to keep our financial health
into our retirement. It sounds simple -- go out, buy a fund,
and let it sit -- but financial stewardship is much more complex
than that view. Both the planner and the process are,
in fact, your passport to retirement.
Let
me tell you how I work with clients. There are six steps
to what I do:
1. Assess the current situation.
2. Assess financial objectives and priorities.
3. Determine the most appropriate course to pursue
objectives.
4. Review recommendations and determine the appropriate
action.
5. Implement decisions.
6. Periodically review and report financial
progress regularly.
Below
I've added detail to the steps in the process I
take with people. I invite you to read through it and
see if you agree.
1.
Assess the current situation
I begin by
sitting down with a person or couple and reviewing what they
have already done or what they have in investments. I listen;
I make no comments or suggestions about their finances at
this stage. It would be premature.
2.
Listen, listen, listen to assess their financial objectives
and priorities.
In the same
meeting, I ask people to explain to me their concerns
and what they expect from their investments. I listen,
listen, listen. Because I am a financial professional,
it is my business to know the possibilities out there. Their
answers may give me some ideas of the kind of financial
vehicle to research. But it is still too early to share those
ideas. In the same session, I also ask them to describe what
is important to them about their money. Of course, I take
notes on all of this.
3.
Determine
the most appropriate course to pursue their financial objectives.
Now
my homework begins. In my office, I take out several
charts and enter the answers I was given into the charts.
This gives me a visual profile of the potential client's wants
and needs and keeps me on the appropriate track.
Then, I begin to research various investment vehicles.
Once my research is done, my assistant calls to
set up a second appointment with people so they can review
my recommendations.
4.
Review recommendations and determine the appropriate action.
When we
sit down for the second time, I review the profile I created
from their needs and desires to show them the connection
between what they want and what I will suggest. Next, I lay
out my suggestions, and I carefully explain the rationale
behind the strategies I offer. Then, it is up to the person
to decide what to do next. He or she may be open to the ideas
presented or may want more ideas.
5. Implement decisions.
Whenever
the person or couple commits to improving their financial
position, it is my job to carry out the transfer
process and to allocate the funds properly.
6. Periodically review and
report financial progress regularly.
It
is also my job to keep my fingers on the investments'
performance. If an investment is underperforming,
I will call the client, raise my concerns and suggest changes
if need be. Anyone with investments ought to touch base with
their financial advisor at least once a quarter. The future
is never predictable: fund managers change, fund mixes change,
and many things can happen. That is why a knowledgeable financial
professional is such a good investment in financial stewardship.
David L. Greene
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