- Establishing and defining the client-consultant relationship – The wealth consultant explains and documents the services to be provided and defines his or her responsibilities along with the responsibilities of the client. The wealth consultant explains how he or she will be compensated and by whom. The wealth consultant and client should agree on how long the relationship will last and how decisions will be made.
- Gathering client data and determining goals and expectations – The wealth consultant asks about the client’s financial situation, personal and financial goals and attitude about risk. The wealth consultant gathers all necessary documents at this stage before giving advice.
- Analyzing and evaluating the client’s financial status – The wealth consultant analyzes client information to assess his or her current situation and determine what must be done to achieve the client’s goals. Depending on the services requested, this assessment could include analyzing the client’s assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
- Developing and presenting planning recommendations and/or alternatives – The wealth consultant offers customized recommendations that address the client’s goals based on the information provided by the client. The wealth consultant reviews the recommendations with the client to allow the client to make informed decisions. The wealth consultant listens to client concerns and revises recommendations as appropriate.
- Implementing the planning recommendations – The wealth consultant and client agree on how recommendations will be carried out. The wealth consultant may carry out the recommendations for the client or he or she may serve as a “coach”, coordinating the process with the client and other professionals such as lawyers, and stockbrokers.
- Monitoring the planning recommendations – The client and the wealth consultant agree upon who will monitor the client’s progress toward the agreed upon goals. If the wealth consultant is involved, he or she will report to the client at agreed upon intervals to review the situation and just recommendations where needed.