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                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, March 22, 1993                   TAG: 9303230323
SECTION: MONEY                    PAGE: 6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

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ELEMENTS OF A FINANCIAL PLAN

Following are the elements of a comprehensive financial plan:

Personal and family data for persons covered in the plan.

Statement of the family's goals and priorities, including time frames.

Issues identified by the family and planner, such as educational costs, taxes or problems like long-term illness.

Assumptions used to prepare the plan such as rate of inflation, investment growth and mortality.

A balance sheet showing assets, liabilities and net worth.

Cash flow analysis for relevant years showing sources and uses of funds.

An income tax analysis showing marginal tax rate and special situations affecting tax liability, with projections for the future.

Analysis of the risks facing the family, such as mortality, liability and property, and an analysis of current insurance policies.

Listing of the current investment portfolio with analysis of liquidity, risk, diversification and suitability in light of family goals.

Analysis of capital required at some future time to provide for goals and special needs with projections of resources available to meet those needs.

Estate planning with identification of the estate's assets and analysis of their control, disposition and taxation.

Written recommendations addressing family goals, all issues and problems identified in the plan and actions necessary to compensate for shortfalls.

Prioritized list of actions required to implement the recommendations.

\ - Source: Registry of Financial Planning Practitioners

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