Using form 1040 to identify financial planning needs.

Summary

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Clients' 1040 forms can help a financial planner identify areas which need attention, such as insurance, college funds or unsuccessful investments. A financial planner can discover what a family's needs are, based on number of dependents claimed, W-2 form information, taxable income or taxable interest income levels, retirement funds and investments. Therefore, the 1040 reveals many areas in which financial planners can offer services.

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Extract

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Using form 1040 to identify financial planning needs.

Form 1040 is virtually unsurpassed as a road map to a client's financial needs, as well as a vital blueprint for developing financial planning goals. Without the information provided on this form, a financial planner would have to invest much more time and effort to identify a client's financial imperatives: for example, a young family's concern about college funding, a middle-aged couple's need for business capital or an older client's worries about having adequate retirement income and reducing the size of their estate.

However, form 1040 is only a tool for identifying opportunities; considerable analysis usually is necessary before any recommendations can be made. This

article describes how to use a client's form 1040 to identify financial planning needs and how to take advantage of an opportunity to complete a financial planning engagement for the cli...

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