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Financial Planning Fact Finder Part I

By Hazel Kennedy,2014-04-05 02:19
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Investment goals and objectives. ? Investment Policy Statement (IPS): Investment time horizons, Risk category, Reward expectations

    - CONFIDENTIAL -

    INITIAL CLIENT DISCOVERY, PART I

    Prepared For:

    Prepared By:

    name

    FIRM NAME

    Edvisor Financial LLC th801 W. 106 Street Suite 212

    Bloomington, MN 55420

    (952) 888-3834

    FAX (952) 884-7967

    E-Mail: edvisorfinancial@gmail.com

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved

    INITIAL PERSONAL INFORMATION DISCOVERY (PART 1)

    -CONFIDENTIAL-

This is the first part of the discovery process. This part contains basic personal information that is relatively easy for

    most clients to fill out. Parts II and III are more difficult, so ideally it’s best to get together in person to complete them.

The information revealed by the completion of these questionnaires will help us define your:

     Present and future financial condition

     Personal financial goals and objectives

     Investment goals and objectives

     Investment Policy Statement (IPS): Investment time horizons, Risk category, Reward expectations

     College funding concerns

     Retirement concerns

     Tax reduction opportunities

     Estate planning opportunities

The completed questionnaire will help us understand what you hope to accomplish during our advisor relationship.

    The information is input into various financial planning software modules, which then determines if various goals can

    be met. The better the information, the better the resulting comprehensive financial plan will be. Every client is

    unique, so the quality of our service and advice is dependent on the accuracy of both subjective and objective

    information.

We may ask some questions you consider to be very personal information. While the answers to all personal

    questions aren’t essential for us to get started, the answers are important if we are to give you the best possible

    personalized advice. All information you share with us is held in strict confidence, and will be used only during our

    client/advisor relationship. Feel free to skip any questions you are not comfortable answering.

Most of the objective financial information we need is readily available from your current statements and financial

    documentation: your personal net worth statement, income tax filings (three years), brokerage statements, 401(k)

    reports, bank statements, partnership K1s, stock option reports, pension and profit sharing annual statements, and so

    on. Please have these documents available for Part II and III of the discovery process (the personal interview).

Feel free to write your notes, comments, or questions anywhere on this form. If a question isn’t clear for any reason,

    please make a note telling us what the problem is so that we can change it.

Thank you for taking the time to complete this form. Please feel free to contact us if something needs to be clarified.

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 2 of 17

    CLIENT & SPOUSE PROFILE

PERSONAL INFORMATION

    The input format for our software programs is “Client” & “Spouse.” The Client’s name shows up first in the reports.

    If there is no preference, list the oldest person as the Client. Please use the sections under the title Spouse for whatever

    the status of the second client may be (significant other, fiancée, daughter, etc.).

     Preferred Name/Nickname: Client’s Name:

     Preferred Name/Nickname: Spouse’s Name:

    Married, how long?:

    Is Client a U.S. citizen? Y N Is Spouse a U.S. citizen? Y N

     Client’s Birthdate: Spouse’s Birthdate:

     Client’s Employer: Spouse’s Employer:

     Client’s Occupation: Spouse’s Occupation:

Primary Contact: Client Spouse

    Maiden Names:

     Primary Residence Address: For how long?: ____________

     City State Zip Code Preferred Mailing Address:

     Phone Number Fax Number Best Time to Call Residence ( ) ( ) Client Business ( ) ( ) Spouse Business ( ) ( ) Cell/Mobile Phones ( ) ( ) Assistants Contact Info ( ) ( ) Client e-mail addresses Home: Work: Spouse e-mail addresses Home: Work:

    If there is only one Client, please check one box on the first question only. If Client and Spouse are not married, please check one of each set of boxes (only the Client needs to check a box in the first section):

1) Status for sole client (or client, if two clients): Single, never married Widow(er), for ____ years

     Separated, probably will be divorced ____________ Divorced, for ____ years

2) Status for two unmarried clients: Living together, not engaged Living together, engaged

     Not living together, engaged Not living together, not engaged (anything other than the first

     three choices): _______________________________________

    Who does most of the family budgeting and/or money management? Client Spouse _________________ ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 3 of 17

    FAMILY INFORMATION

List everyone that you consider to be in your immediate family. Family members in an earlier generation (e.g., parents) need not be listed unless they have a significant effect on your financial life (e.g., a parent in a nursing home,

    or a relative who may gift assets to you upon their passing).

    Dependent Year Male Relationship to Natural (on you for of or Client or Adopted Name financial Birth Female Spouse* Stepchild support)?

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

     M F N A S Y N

* Some examples would be: son, granddaughter, mother-in-law, etc.

Note here if you are currently pregnant, or have plans to have additional children: _______________________

    _________________________________________________________________________________________

    Summarize contents of any divorce settlements, prenuptial or premarital agreements: _____________________

    _________________________________________________________________________________________

Note here if there are any significant health problems with any person listed above: ______________________

    _________________________________________________________________________________________

    YOUR OTHER CURRENT ADVISORS

    INCLUDE IN ADVISORS NAME PHONE DECISION MAKING?

    Attorney: Yes No ( )

    CPA: Yes No ( )

    Insurance Agent: Yes No ( )

    Financial advisor: Yes No ( ) Year of last financial How many financial advisors have you ______ plan: had in the past five years:

    Are you considering Why?____________________________________________ leaving?

    ____________________________________

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 4 of 17

    OPTIONAL PERSONAL INFORMATION

    The more we know about you, the better we can advise you. Feel free to skip any of these questions.

Do you provide financial support for any members of your extended family (e.g., parents, aunts, uncles, siblings, etc.)?

    If so, in what way?

    Client: ________________________________________________________________________________

Spouse: _______________________________________________________________________________

Does any family member have military of federal civil service experience? Please not ending pay grade:

    Client: ________________________________________________________________________________

Spouse: _______________________________________________________________________________

Do you anticipate providing support for anyone in the future? If so, how (if with money, how much) and for how

    long?

    Client: ________________________________________________________________________________

Spouse: _______________________________________________________________________________

Do certain charitable organizations enter into your planning? If so, would you tell us a little about your intentions?

    Client: ________________________________________________________________________________

Spouse: _______________________________________________________________________________

Do you expect to receive any inheritances? If so, please describe:

     Amount Type of property Benefactor’s Age & Is this Written in the

     (e.g., stocks, real estate, etc.) Relation to You Benefactor’s Will? Client: $____________ ________________________ ____ _____________ Y N

     $____________ ________________________ ____ _____________ Y N

    Spouse: $____________ ________________________ ____ _____________ Y N

     $____________ ________________________ ____ _____________ Y N

    What is the risk of losing your job for any reason: Client: ___________________ Spouse: _________________

    What are the obstacles in reaching your goals: Client: ___________________ Spouse: _________________

Any big promotions coming up at work? Client: Y N Spouse: Y N Details: ________________

Planning to return to college someday? Client: Y N Spouse: Y N Details: ________________

What are your long term career goals: Client: ____________________________________________________

     Spouse: ____________________________________________________

? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 5 of 17

OPTIONAL PERSONAL INFORMATION, CONTINUED

How do you feel about paying taxes?

    Client:

    ____________________________________________________________________________________

    Spouse:

    ___________________________________________________________________________________

What is preventing or delaying you from doing those things that are the best use of your time and talents?

    Client:

    ____________________________________________________________________________________

    Spouse:

    ___________________________________________________________________________________

If you could wave a magic wand and create the perfect life for you and your family, what would it look like?

    Client:

    ____________________________________________________________________________________

    Spouse:

    ___________________________________________________________________________________

Do you or your spouse have any known medical problems? (e.g., high blood pressure, asthma, etc.)?

    Client:

    ____________________________________________________________________________________

    Spouse:

    ___________________________________________________________________________________

Do you having any lawsuits pending? Are the plaintiff or defendant, how much money is involved, etc.

    Client: ________________________________________________________________________________

    Spouse: _______________________________________________________________________________

Do you or your spouse smoke? Client: Yes No Spouse: Yes No

Are you or your spouse a pilot or a student pilot? If so, state the type of license and hours flown per year.

    Client: _________________________________________________________________________________

    Spouse: ________________________________________________________________________________

Do you or your spouse engage in any “hazardous” activities (scuba or skydiving, etc.)?

    Client: _________________________________________________________________________________

    Spouse: ________________________________________________________________________________

What are your primary hobbies and interests?

    Client: _________________________________________________________________________________

    Spouse: ________________________________________________________________________________

Are you or your spouse a member of any Board of Directors or Board of Trustees?

     Corporate Charitable

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 6 of 17

     _________________________________ _________________________________

     _________________________________ _________________________________

     _________________________________ _________________________________

    How is your credit rating: Client: _____________________ Spouse: ______________________

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 7 of 17

    INVESTMENTS: GOALS AND RISK TEMPERAMENT

    Your Ranking: 1 - 11

    Not Very (1 = Most important) Somewhat Important Your Investment and Planning Important Please don’t use the Important same number more Goals and Objectives than once. Client Spouse Client Spouse Client Spouse Client Spouse

     _____ _____ 1) Accumulating wealth for the future

     _____ _____ 2) Charitable giving

     3) _____ _____ Children/Grandchildren’s education

     _____ _____ 4) Controlling expenses or debt

     _____ _____ 5) Emergency cash reserves

     _____ _____ 6) Major purchases

     _____ _____ 7) Preserving wealth for heirs

     _____ _____ 8) Protection from death or disability

     _____ _____ 9) Reducing income taxes

    10) _____ _____ Retirement/financial Independence

     _____ _____ 11) Other: ____________________

     Please describe the best, and worst, financial investments you’ve ever made:

     Client: Best: ___________________________________ Worst: __________________________________

     Spouse: Best: Worst:

     List any investment-related personal preferences and/or constraints that we should take into consideration:

     Examples: Don’t sell any XYZ stock; don’t buy any emerging market funds.

     Client: _________________________________________________________________________________

     Spouse:

    Please list all expected cash withdrawals from your investments that you will have with us, and their time frames:

     Examples: $10,000 next year to buy a boat. $3,000 a month forever when I retire in two years.

     Client: _________________________________________________________________________________

     Spouse:

     We’d like to know what you think investment risk is so we’ll be talking about the same thing in our

     discussions. Please write a short sentence describing what you think investment risk is:

     Example: Investment risk to me means the risk of losing any money that I invested.

     Client: ________________________________________________________________________________

     Spouse:

     How much input do you want to make regarding managing your investments:

     Client A:

     Client B:

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 8 of 17

INVESTMENTS, CONTINUED

Check only one box for each question. If you received only one Fact Finder for client & spouse - and client

    and spouse’s answers differ substantially - please use an average (of client and spouse).

(1) Using your above-listed definition of risk, indicate the general level of investment risk you are willing to accept.

    (Note: Risk and return are linked, meaning that one generally cannot get a high rate of investment return without

    assuming a high level of investment risk.)

    A Low (I want maximum attention to be paid to minimizing what I said in the above statement.)

    B Low to Medium (I want a lot of attention paid to minimizing what I said in the above statement.)

    C Medium to High (I want moderate attention paid to minimizing what I said in the above statement.)

    D High (I want little attention to be paid to minimizing what I said in the above statement.)

(2) What is the rate of return goal for your total combined investment portfolio? (Note: Having 100% of your assets in

    a large basket of large stocks (S&P500) has had an average return of about 11% over the last 75 years. Having

    100% of your assets in a large basket of small stocks has had an average return of about 13% over the last 75 years.

    Having more than 70% of your assets invested in stocks is considered to be taking very high risk.)

    A 4.5% to 6.5%

    B 6.5% to 8.5%

    C 8.5% to 10.5%

    D Over 10.5%

(3) Which of the following best describes your investment objectives & temperament? (Check only one box.)

     Preservation of capital with major emphasis on generating current investment

    A Income: income. Most investment income will be withdrawn and spent. E.g., I want the

     portfolio to produce income to live off of (either now or in the near future) while

     minimizing risks of principal loss.

     A combination of current income, preservation of capital, and capital appreciation,

    Income & Growth: B with the primary consideration being preservation of capital and current income.

     Some income will be withdrawn. E.g., I want the portfolio to produce income, but

     also provide enough principal growth so the income will keep pace, or outpace,

    inflation over a long-time horizon.

     A combination of capital appreciation and current income, with the primary

    C Growth & Income: consideration being growth of capital. Most income will be reinvested. E.g., I want

     the portfolio to grow moderately to accumulate wealth for future goals.

     Maximum capital appreciation (long-term growth), accepting higher risk and

    Growth: D volatility, with little or no income expected or withdrawn. E.g., I want the portfolio

     to grow substantially to accumulate wealth for future goals.

? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 9 of 17

    INVESTMENTS, CONTINUED

    $1,500

    $1,000

    $500

    $0

    -$500

    -$1,000

    -$1,500Portfolio APortfolio BPortfolio CPorfolio D

(4) The chart above shows the one-year profit/loss on a $10,000 investment from four different portfolios. Assume

    you have an equal chance of getting any random positive or negative return within each portfolio’s range (do not

    assume you’ll get the average of the minimum and maximum return). Which one portfolio would you choose?

    A Portfolio A (where you’ll make anywhere between +$100 to +$600, or +1% to +6% over the next year.)

    B Portfolio B (where you’ll make anywhere between -$400 to +$700, or -4% to +7% over the next year.) C Portfolio C (where you’ll make anywhere between -$1,000 to +$900, or -10% to +9% over the next year.) D Portfolio D (where you’ll get anywhere between -$1500 to +$1200, or -15% to +12% over the next year.)

(5) How do you feel about inflation and its impact on your investments? (Note: The U.S. annual inflation rate has

    averaged about 3.25% since 1926, but has also been over 10% several years in that period.)

    A I am satisfied with my investments just keeping pace with the rate of inflation, or being slightly above. I am

    willing to forego returns higher than inflation in order to limit the risk in my investments.

    B I prefer to achieve returns that are slightly to moderately above the rate of inflation (2% to 4% higher). I am

    willing to assume some risk in my investments in order to achieve such returns.

    C I prefer to achieve returns that are moderately above the rate of inflation (5% to 7% higher). I am willing to

    assume higher risk in my investments in order to achieve such returns.

    D I prefer that my investments achieve returns much higher than the rate of inflation (>7% higher). I am willing

    to assume significant risk in order to achieve returns that are much higher than inflation.

(6) How do you feel about short-term (one year or less) fluctuations in the value of your portfolio? (Note: a ?5%

    fluctuation over one year in a $10,000 investment would mean its value would fluctuate between $9,500 and

    $10,500 over the year.)

    A I do not want the possibility of substantial fluctuations in the value of my portfolio. I prefer to minimize all

    fluctuations in the value of my portfolio.

    B I can tolerate small to moderate fluctuations in my portfolio (?1% to ?5%) in order to attempt to outpace

    inflation over the long term.

    C I can tolerate moderate to high amounts of fluctuations in my portfolio (?6% to ?10%) in order to attempt to

    achieve returns higher than inflation over the long term.

    D I can tolerate large fluctuations in my portfolio (? >10%) in order to increase the potential of achieving

    returns much higher than inflation over the long term.

    ? Copyright 1997 - 2007 Toolsformoney.com, All Rights Reserved 04/05/10 Page 10 of 17

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