Illustration of Incremental Data Collection for Modular Planning
From Planipedia
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Basic Data Needed for all Types of Service – When doing any kind of planning there is some information that is foundational and is required no matter what type of service you intend to provide.
Incremental Data Needed to Provide Investment Planning Services – You have two choices when gathering data for investment management services.
- Summary information about all assets and liabilities with minimal detail; or
- Detailed information about all assets and liabilities.
Summary Assets & Liabilities – Here’s an example of the information you would collect to get an overview of your client’s net worth as well as their estimated current asset allocation.
Detailed Assets & Liabilities – You could collect more detailed information to get a more in-depth and accurate picture of your client’s net worth and current asset allocation.
Investor Profile – One aspect of the planning process when it comes to investment management is to have a methodology for determining your client’s risk profile. This is a mandatory step in the Know Your Client (KYC) process. Below is an example of one method designed to identify client risk profile. This data must be collected, interpreted and effectively communicated to the client in order to provide investment management services.
For an in-depth examination of Investment Policy Statements please see Clarify Current Position/Identify Problems and Opportunities.
Incremental Data Needed to Provide Retirement Planning Services – To offer retirement planning services, you have to collect incremental data about the client’s retirement objectives and some summary level data about their current cash flow.
Incremental Data Needed to Provide Education Planning Services – While you have previously identified the client’s dependants, now add in information about their objectives for educational funding.
Incremental Data Needed to Provide Estate Planning Services – Will information as well as beneficiaries on detailed assets and ACB on all assets are important components of an estate plan.
Will Information
Valuable Source Documents – When collecting data, it often is more accurate and efficient to have the client provide source documents for you to review and identify relevant information. Here’s a sample document checklist that can help you direct the client on what they should gather together for your next meeting.
Document Checklist
