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1.6.1. Review performance and progress of the plan with the client.

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At various times after the implementation of the financial planning strategies and
recommendations, it is advisable to check in on a client’s progress toward the
fulfillment of their financial goals. There are four primary responsibilities specific to a
monitoring engagement.

1. Ascertain whether all recommended financial strategies have been

undertaken.

This evaluation enables a financial planner to differentiate gaps caused by the results
of the strategies implemented, and those caused by failure to implement strategies.
This is a first step in determining whether existing strategies and recommendations
are effective for the stated financial goals.

1. Measure and evaluate the progress toward financial goals

In measuring this progress, it is important to focus on relevant criteria and other

factors that contribute toward the client’s goals. For example, in evaluating a client’s
progress toward established goals for retirement savings, it may not be relevant to
focus on the amount being saved if the shortfall is due to the client’s investment mix.

1. Identify changes in client circumstances and external factors that affect

the financial plan.

Through conversations with clients, the sue of checklists and data gathering forms,
and other investigative activities, a CFP CM should investigate whether anything has
changed that might impact either the client’s progress toward existing goals or the
continuing relevance of those goals. A new child or an unexpected inheritance can
dramatically impact the ongoing relevance of existing financial strategies.

1. Communicate to the client the evaluation toward the achievement of

stated goals.

Often the services a financial planner performs in monitoring a client’s progress point
to the need to review or update existing financial plans and strategies. As in any
engagement, such communication should ordinarily be in writing. A financial planner
can add value by communicating in a way that facilitates action by the client on the
recommendations.