SALES PLANNING PROJECT 1

Transcription

1 (Assigned Class Due Class 3) Purpose To understand a prospect s financial planning needs, first you must understand the prospect s financial goals and dreams. In addition, you must understand the obstacles that can hinder achieving these goals. This project will help you practice exploring a prospect s financial goals and obstacles by analyzing your own situation. In this project, you are the client! Assignment Complete the following activity and answer the related questions. Procedure 1. Make a list of your top five to 10 goals (such as buying a home, retirement, a vacation trip, purchasing a vacation home, and so forth) and anticipated events (such as marriage, birth of a child, postsecondary education for child or self, child s marriage, beginning a second career, buying a car, and so forth). 2. Prioritize your goals. Number them in order of importance. For example, retirement may be number 1, buying a home number 2, and so forth. 3. Circle the goals that have financial impact. Place a check mark next to the ones for which you have identified the amount needed to fund the goal and have begun funding. 4. Indicate your current age on the time line with a star. The time line will help you see how much time you have to achieve your goals. 5. Plot where you foresee achieving your goals or the anticipated events occurring (using an appropriate abbreviation or the corresponding letter, whichever you prefer). Next to each point, write the number of years from today in parentheses. Some goals may occur multiple times. For example, you have three children and expect all three to pursue postsecondary education (represented below by goal G ). In this case, treat education as one goal but indicate it multiple times. See example below ?? = A (5) C (20) D (7) G (10) H (17) E (22) F (23) G (13) G (16) B (25) W-15

2 6. Answer the questions to help you identify obstacles to achieving your financial goals. 7. Answer the summary questions. W-16

3 Name Date Report From (1 of 3) 1. Identify 5 to 10 goals (or anticipated events). Prioritize them. Then, circle those goals that require money. Finally, place a checkmark next to those goals for which you have calculated the amount needed and which you have started funding. A Goal/Event Priority Goal/Event Priority F B G C H D I E J 2. Draw a star for your current age on the timeline below. Plot the goals and events from above along with the estimated number of years before they are to be achieved or occur. Note: Instructions on how to annotate are below. 1. Open the Comment toolbar and select the desired annotation tool. 2. To select the drawing markup tool, open the Comment toolbar and click the Drawing Tools icon. 3. Select the desired tool from the Drawing Tools menu ?? W-17

4 Report From (2 of 3) 3. Which of these goals would you want to achieve if one of the following events happened to you or your partner (if applicable)? List the letters of these goals. Died tomorrow Disabled tomorrow Hospitalized tomorrow Needed LTC at age 65 Parents needed LTC tomorrow You Partner 4. Describe the financial impact each of the following situations would have on you and/or your family. Also indicate your level of concern that such an event may occur. Use a scale of 1 to 5 with 1 indicating no concern and 5 indicating great concern. Event Concern Finanical Impact/Strategy Your premature death Your disability Your need for LTC Losing your job Totaling your car Your house burning down Getting sued W-18

5 Name Date Report From (3 of 3) 5. List other potential and plausible obstacles that could inhibit your achieving these goals. Focus on obstacles that are real and preventable, such as credit card debt, out-of-control spending, and so forth. Describe your strategy for avoiding these obstacles. Potential Obstacle Strategy Summary Questions 1. Do you have a comprehensive financial plan? If yes, what planning areas does it cover? If not, why not? 2. How feasible is it for you to fully fund all of the finances needed to achieve all of your goals? What solution(s) do you see to this problem? 3. What action is required in light of your assessment of potential obstacles? 4. What two things did you learn about your own financial plan through this exercise? W-19