Comprehensive
Under Comprehensive Financial Planning, the service provided are much more detailed. Comprehensive financial planning consists of all of the following:
- Cash flow and net worth.
- Tabulate cash flow and net worth tables.
- Ensure figures tally with documentary evidence. These tables are extremely important because all of the following items rely on the cash flow and net worth tables.
- Credit management.
- Set budget of down payment of property purchase taking account of emergency cash level.
- Calculate different scenarios in interest rates, tenor and loan amount.
- Select appropriate loan combinations to meet cash flow.
- Determine that the level of loan and mortgage installments are within the existing regulatory limits.
- Protection planning.
- Tabulate all existing policies’ sum assured, policy inception, premium, cash value.
- Classify existing insurances according to categories.
- Check for non-renewability clauses.
- Check for validity of insurance nominations.
- Check for duplicate policies and riders.
- Project cost of insurance for investment-linked policies.
- Perform survival-needs analysis using time value for money.
- Calculate shortfall based on survival needs analysis.
- Recommends policies to meet these shortfalls.
- Children’s education planning
- Project cost of education using time value for money.
- Project cost of education for different geographical place of studies.
- Calculate amount required to be set aside or the monthly required savings to meet target amount.
- Retirement planning
- Calculate basic expenditure by removing unnecessary expenses from cash flow tables.
- Project required retirement amount using time value for money.
- Calculate amount required to save to achieve retirement goal.
- Perform Monte Carlo simulation to increase confidence level of retirement planning (additional fee chargeable).
- Investment planning.
- Calculate existing weight average return. Compared with assumed discount rate.
- Determine required nominal return and real return based on Children’s Education Planning and Retirement Planning.
- Determine risk tolerance. Determine ability to take risk and willingness to take risks.
- Determine liquidity constraints.
- Determine time horizon constraints.
- Determine tax constraints
- Determine legal and regulatory constraints.
- Determine unique circumstances.
- Select appropriate asset allocation to meet required return and constraints.
- Recommend products and solutions to implement the asset allocation.
- Tax planning
- Determine whether tax relief are claimed for all dependents.
- Determine whether SRS, CPF Minmum Sum Top-up, etc are utilised.
- Determine any other tax relief and rebates not ulitised.
- Calculate with precision the amount of tax that can be saved.
- Estate planning
- Calculate with precision existing estate size based on personal and simultaneous death of married couple.
- Calculate with precision how existing estate is distributed to whom and what amount.
- Determine whether 3rd party insurance policies are bequest to appropriate persons.
- Determine whether all dependents received their fair share of estate.
- Determine whether guardian(s) are appointed for minors beneficiaries.
- Determine whether suitable trustees were appointed for minors beneficiaries.
- Determine the domicile of client.
- Recommend suitable estate planning tools such as nominations, Wills, testamentary trusts and living trusts.
- Explain and recommend the Lasting Power of Attorney.
Typical profile of individuals who use Comprehensive Financial Planning are:
- Families with young children.
- Parents with children with special needs.
- Parents with children born from previous marriages.
- Persons approaching retirement.
- Retirees.
- Asset Protection for business owners.
Note that Comprehensive Financial Planning is only offered by Private Wealth Planners.
