CALS Tool

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Disclaimer

Important Notice

RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts.

The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

Agenda

• The Fact Finding process

• What is CALS?

• How to prepare CALS

• Case study – Warren & Wendy

• Fact Finding tips

• Accessing the tools

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The Fact Finding process

• Fact Finding process

• What are the client’s objectives?

• Determine the client’s current financial situation

• Are there any issues with the client’s current financial situation?

• Will the client’s goals be met?

• Collect further information if required

• Input all data into Xplan PFP Wizard

The CALS diagram is a tool to help you determine the client’s current

financial situation and identify issues

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What is CALS?

• Acronym for Cashflow, Assets, Liabilities, Structures

• Not a new concept – advisers have always used CALS in financial planning

• CALS diagram

• A tool to help you to build a one page picture of the client’s financial situation

• The picture is easily understood by the client

• Helps the client see their situation from a holistic viewpoint

• Client can often identify the issues themselves

• Advice becomes easier to sell if the client can see the issues

The ability to show a client their financial snapshot in a single picture can be an incredibly valuable tool

The ability to show a client their financial snapshot in a single picture can be an incredibly valuable tool

How to prepare a CALS

• Draw the diagram on a whiteboard

• Power Point slide

• Excel document – automatically total the relevant fields for you

• Word document – A3 and A4 sizes available – useful if you’re seeing a client remotely

• Merge report in Xplan – called ‘RI Advice – CALS’

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Consider using the ‘Snapshot Questionnaire’ to gather some

information prior to your first meeting.

Use the method that works best for you and which fits in with your

business

CALS documents are available at Adviser Services

> Advice > Fact Finds

CALS – case study

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CALS – tips for identifying issues

• Six advice streams – think through each:

– Cashflow

– Debt management

– Investment

– Risk management

– Estate planning

– Structuring

• Xtools retirement funding calculator

– Point of sales tool

– Project the client’s savings to see if goals can be met

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• Input the CALS data into the Xplan PFP Wizard

• Complete all other relevant information in the PFP Wizard

• At client review, generate a reverse Fact Find – check details with the client and update

• Keep comprehensive File Notes to support your Fact Finding process

• Needs and issues

– Don’t rely on the ticker box – restate the client’s words into the Fact Find and SOA

• Scoping

– Fact Find, File Notes and SOA should all replicate what is being scoped out

– Can’t be driven by the adviser, can only be driven by the client

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Fact finding tips

Xplan should be your source of truthXplan should be your source of truth

Fact finding mistakes

• Fact Find not signed by both Adviser and Client

• LOE not completed, or not signed by Client

• Risk profile questionnaire not completed, or not revisited when risk profile changes

• Scoping being driven by Adviser, or not clearly stated in Fact Find, File Note and SOA

• Sufficient data not gathered to address client issue

Accessing the tools

• CALS tool now available for everyone (from 6 August)

• Different formats so you can choose best option to fit in with your client engagement process:

– Word – A4 & A3 size

– Excel

– PowerPoint

– Xplan merge report - called ‘RI Advice – CALS’

• Access templates via Adviser Services website

– Go to > Advice> Fact finds and FSG > CALS diagram