Making Your Assessment

Step 1: Review the context

What information is important to note when making a financial assessment that is NOT in the Elements scorecard?

• Age
• Occupation
• Family size
• Goals & Values

Step 2: Refine the data

Follow the data gathering process in lesson 3.2 and review the data provided in the following order:

1. Confirm net worth and balance sheet items
2. Confirm annual income and spending estimate
3. Check for savings contributions and debt payments
4. Do a once-over on taxes, insurance and equity mix

Step 3: Make observations

We've found that asking yourself some basic questions and know which Elements to look at will help guide your observations. The major questions include the following:

• Is work optional for the client today? If not, are they prepared to make work optional in the future? (Tt)
• Are they using their income wisely? (Sr, Br, Dr, Tr)
• Do they have the right mix of assets? (Lt, Qt, Rt, Bt)
• *Are they taking the right amount of risk? (Ir, Er)

Step 4: Solicit reactions and collaborate

Ideas to collaborate with the client/prospect:

• Spend time clarifying context
• Educate on the data entered when needed. Fill in gaps with the client
• After making an observation, ask the client for their reaction
• Send the client a one page plan with your written observations

Related to

• Getting Started