M9: THE FACT-FIND AND FINANCIAL PLANNING
Ø What is a fact- find?
o Identify a client’s financial planning needs;
o Quantity them; and
o Prioritize them based on the resources available for investment.
Ø A fact-find shows the current financial position of the person, where they stand today and their anticipated future changes
Ø A fact-find indentifies a client’s financial planning needs and points towards those needs that are the priority for the client.
Ø Objectives of a fact find are as follows:
o Identifying needs
o Gathering client data
o Analyzing client cash flows and
o Providing for anticipated changes
Ø Identifying needs: the prime objective fact-finding is to identify client needs in the areas of:’
o Protection
o Savings
o Investment
o Health insurance
Ø Gathering client data: this requires
o Knowledge of the personal details of each client, their dependants, finances and employment status.
o Existing health and life insurances and any existing pension provision.
o An understanding of the client’s personal aims, desires and objectives for the future.
o An important fact finding objective is to find out the disposable income.
