The financial planning process consists of six steps that help you take a “big picture” look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

1. Establishing and defining the client-planner relationship.

At the onset it is necessary to determine the financial “problems” that need to be answered. We will ask for information about your financial situation. Along with you, we will mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. In the initial meeting, some of the questions that will be discussed are:

• Approximately how long will the engagement last?
• During the engagement, what is the client’s responsibility and what is the planner’s responsibility?
• How much will my financial planning engagement cost?

We will explain what services can be provided, and together we will agree on what services will comprise the planning engagement. These services will be formally documented in an agreement.

We will explain fully how the services are paid for, and by whom. You and the planner should agree on how long the professional relationship should last and on how decisions will be made.

2. Gathering client data, including goals.

With any financial planning engagement, there is a certain amount of personal financial information that will need to be collected. The items that may be requested will be dependent upon the advice you may be seeking. Here are several items that we may request:

• Tax Returns
• Investment Details
• Retirement Plan Information
• Budget Information
• Mortgage Details (rate, term, etc.)
• Estate Documents
• Income Information
• Estate Documents
• Insurance Policies

3. Analyzing and evaluating your financial status.

We will analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies. Examples of what we will address include:

• Are your financial goals feasible?
• What needs to be done in order to accomplish your financial goals?
• What changes could be made that would strengthen your financial condition?
• Are there any estate, tax or other family financial planning issues to consider?
• Are there any hidden risks that should be incorporated into the financial plan?

4. Developing and presenting financial planning recommendations and/or alternatives.

We will offer financial planning recommendations that address your goals based on the information you provide. We will go over the recommendations with you to help you understand them so that you can make informed decisions. We will also listen to your concerns and revise the recommendations as appropriate. Listed below are categories of recommendations that may be presented to you.

• Strategies to improve cash flow
• Tax minimization techniques
• Reduce risk or enhance portfolio performance
• Debt reduction strategies
• Risk avoidance or minimization strategies
• Wealth transfer strategies
• Education savings alternatives
• Charitable or gifting strategies
• Retirement distribution recommendations

5. Implementing the financial planning recommendations.

We will agree on how the recommendations will be carried out. Nicolette Financial may carry out the recommendations or serve as your “coach,” coordinating the whole process with you and other professionals such as attorneys or stockbrokers.

6. Monitoring the financial planning recommendations.

Finally, we will discuss who will monitor your progress towards your goals. If Nicolette Financial is in charge of the process, we will report to you periodically to review your situation and adjust the recommendations, if needed, as your life changes. Nicolette Financial will be there every step of the way to provide sound financial guidance that will ensure your financial success.