Many people need a professional to help with their personal financial planning. Following is a checklist of what to bring to your first meeting. The better prepared you are, the better the meeting will be.
Financial Planning Checklist
- A personal financial statement if you have one. Many of the following items provide the backup of your net worth. If you do not have a financial statement the planner should be able to prepare one from the information you provide, but that will delay the start of the actual planning.
- Copies of your tax returns for the last two years for the planner to review.
- Copies of the W-2 forms reported on those tax returns.
- Details on any mortgages or home equity loans on your residence or other real estate including balance due, term and interest rate.
- The last statement of each credit card account with balances that are being paid out. Also include details of all other debt.
- Ages of your children (and adult grandchildren), and their general financial situation.
- Information regarding anyone you are supporting.
- Complete details of annuities you have including what you receive annually from them, what the investments inside the annuity are, what you are guaranteed, the penalty for terminating the annuity, how long you had it, the title of the account and beneficiaries. Also, identify any annuities that are within an IRA or other tax-sheltered retirement accounts.
- The last bank and brokerage statements of each account you have, including dividend reinvestment plans and shares held in your individual name. The statements should all be with the same closing date. For example, if the last statements you have from most of your accounts are May 31, and one account is dated March 31 – then bring all the March 31 statements. Bring subsequent statements if major changes have occurred. Include details of any crypto investments.
- The last bank or brokerage statement of each retirement plan, IRA, Pension, 401k, and 403b account you have, also with the same closing date.
- If you have employer securities in your 401k account, please bring cost details.
- Your last statement if you are a participant in an Employer Stock Option Plan (ESOP).
- Schedules of the expiration dates of all employer stock options and indicate if they are incentive stock options or non-qualified stock options.
- If you have restricted stock from your employer, schedules indicating the date issued, cost and value when issued, vesting dates, and approximate current value.
- Details of the cost of any shares you own through your employer’s stock purchase plans.
- If you have any other cash, stocks or bonds, the last bank or brokerage account statement for each item.
- Details of any pension income you are or will be receiving and what the survivor benefits are. If you are an active participant in an employer pension plan, the last statement provided to you.
- If you have a concentrated stock position, i.e., more than 15% of your total financial assets in one company, please bring a schedule of the cost of those shares by number of shares, date purchased and amount. Note: This should be included in the above information, so just indicate that.
- A copy of your current will for the planner to peruse.
- Copy of your current power of attorney, if any.
- Copies of trusts you established, or are a beneficiary of, or are a trustee.
- Copies of any documents relating to estates you are a beneficiary of.
- Details of any life insurance you, your spouse or partner have. Include face, premiums, ownership and beneficiaries. This should include employer-provided life insurance.
- The amount of umbrella insurance coverage, if any.
- Copies of any financial or legal agreements such as a divorce or marital separation agreement, prenuptial agreement, or employment contracts.
- Your annual personal household and cash expenditures. A round ballpark number is all that is necessary.
- Details of any real estate owned. Include original cost, approximate additions, major repairs and renovations, and present value.
- If you own a business, the latest three years’ financial statements and tax returns; and any stockholders, partners, and members’ agreements, including buy-sell agreements. Also, bring a copy of any business appraisals or valuations during the last ten years.
- Details of any business-owned life insurance on you or partners, members or fellow stockholders.
- Details of any other assets of value you have such as jewelry, collectibles and art. If the items are covered by insurance, please bring the policies.
The above information request seems like a lot and might seem overly voluminous, but it is all necessary. You should consider the meeting as something that might alter the course of the rest of your life, and the degree of financial security you should have. In that case, shouldn’t you use as much information as possible? The greater the input, the more applicable the output will be.
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