Financial Plan

BU MET CPE Financial Planning Capstone

Capstone Course Executive Summary Template

Financial Plan Outline Client Profile Scope of the Engagement Purpose of the Plan Client Goals Risk Tolerance Economic Assumptions Your Financial Health:

Financial Analysis Planning Recommendations Plan Implementation Strategies

Risk Management: Financial Analysis Planning Recommendations Plan Implementation Strategies

Investment Planning: Financial Analysis Planning Recommendations Plan Implementation Strategies

Retirement Planning: Financial Analysis Planning Recommendations Plan Implementation Strategies

Income Tax Planning: Financial Analysis Planning Recommendations Plan Implementation Strategies

Estate Planning: Financial Analysis Planning Recommendations Plan Implementation Strategies

Action Plan: Prioritize Planning Recommendations Plan Implementation Strategies Implementation Timeframe

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BU MET CPE Financial Planning Capstone

Instructions for Developing a Financial Plan Client Profile: State client names, ages, job title and employment information, health status, children, and any other pertinent personal information. Scope of the Engagement: Define the scope of the engagement that has been mutually identified by the client and the financial planner. Purpose of Plan: The purpose of this comprehensive financial plan is to provide a framework for helping you reach your financial goals and objectives. The plan consists of a section for each of the following subject areas: your financial health, risk management, investment planning, retirement planning, tax planning, estate planning and specialized planning such as education planning or planning for special needs, if warranted. Client Goals: A comprehensive review of your financial situation was conducted using information you provided to our firm. The following financial goals were identified (list goals here). Risk Tolerance: State the client’s risk tolerance level. Economic Assumptions: State the clients’ economic assumptions used to develop the financial plan. Summary of Your Financial Health Documents: Prepare the following documents and attach to this financial plan. Statement of Financial Position, Ratio Analysis, and Statement of Cash Flow.

1. Describe the clients’ current financial situation and discuss strengths and weaknesses of their financial position. Address net worth, cash flow analysis, savings, emergency fund, and any pertinent credit and/or debt management issues.

2. Provide planning recommendations for alternative courses of action that are expected to improve the clients’ current financial position or accomplish one or more client goals.

3. Describe the actions, services and/or products needed to implement the planning recommendations. If applicable, determine the amount needed to fund the recommendations in today’s dollars and identify sources of funding.

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BU MET CPE Financial Planning Capstone

Summary of Risk Management

Documents: Prepare an Insurance Needs Analysis and attach to this financial plan. 1. Describe the clients’ current risk management situation and discuss strengths and

weaknesses of insurance protection. Identify any unprotected exposures to risk, insufficient insurance coverage or excessive coverage by conducting a life insurance needs analysis for each spouse. Answer any client questions as it related to their: health, disability, long-term care, and property insurance coverage.

2. Provide planning recommendations for alternative courses of action that are expected to improve the clients’ current insurance coverage or accomplish one or more client goals.

3. Describe the actions, services and/or products needed to implement the planning recommendations. Determine the amount needed to fund the recommendations in today’s dollars and identify sources of funding.

Summary of Investment Planning Documents: Prepare an Investment Policy Statement, an analysis of the client’s investment portfolio and a new asset allocation strategy and attach to this financial plan.

1. Describe the clients’ current investment situation. Discuss any strengths and weaknesses in their investment portfolio after calculating real rates of return and considering client goals, risk tolerance and economic assumptions.

2. Provide asset allocation and investment planning recommendations for alternative courses of action that are expected to improve the clients’ investment position or accomplish one or more client goals.

3. Describe the actions, services and/or products needed to implement the planning recommendations. Determine the amount needed to fund the recommendations in today’s dollars and identify sources of funding.

Summary of Retirement Planning Documents: Prepare a retirement needs analysis and attach to this financial plan.

1. Describe the clients’ current financial position for meeting retirement goals after conducting a retirement needs analysis. Discuss any strengths and weaknesses in their current retirement plan considering personal and economic assumptions and projected tax rates and investment returns.

2. Provide retirement planning recommendations for alternative courses of action that are expected to improve the clients’ retirement position.

3. Describe the actions, services and/or products needed to implement the planning recommendations. Determine the amount needed to fund the recommendations in today’s dollars and identify sources of funding.

Summary of Income Tax Planning

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BU MET CPE Financial Planning Capstone

Documents: Prepare any necessary tax worksheets and attach to this financial plan.

1. Describe the clients’ current tax situation discussing any strengths and weaknesses. Review and address tax templates for Self-employment tax and Net Rental Income.

2. Provide tax planning recommendations for alternative courses of action that are expected to improve the clients’ tax position or accomplish one or more client goals.

3. Describe the actions, services and/or products needed to implement the tax planning recommendations.

Summary of Estate Planning Documents: Prepare a property ownership spreadsheet and estate tax calculations for each spouse and attach to this financial plan.

1. Describe each client’s current estate tax and probate situation and discuss any strengths and weaknesses in their current estate plan.

2. Provide estate planning recommendations for alternative courses of action that are expected to improve the clients’ estate planning position.

3. Describe the actions, services and/or products needed to implement the estate planning recommendations and identify sources of funding.

Action Plan

1. Select and prioritize at least four financial planning recommendations that will most improve your clients’ financial situation and bring them closer to meeting their goals.

2. Discuss why you chose these recommendations and explain the impact these recommendations will have on your clients’ future financial position. Justify your reasoning.

3. Describe the actions, services and/or products needed to implement the financial planning recommendations and identify the sources of funding.

4. Provide an estimated timeframe to implement each recommendation and identify the responsibilities that each party has in the implementation process.

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