Developing a Well‐Thought‐Out Personal Financial Plan

The purpose of the financial planning process is to provide a well-thought-out plan based on the planner gaining an understanding of client's wishes and desires to help determine whether they can then become client realities. This chapter discusses concepts that provide the basis for planning discussions and opportunities on what financial planners need to do in providing a better financial planning experience for their clients. Managing client expectations means they are fully expecting what will happen and will not be surprised by the reality and the fine print. Communication is a critical skill for financial planners to master. Nonverbal behaviors are ways to communicate without words. An engagement letter is a written agreement that describes the financial planning relationship that is about to be entered into by the client and the financial planner. Establishment of the client–planner relationship lays the groundwork for developing the trust required for successful financial planning.