In this stage of the planning process, the planner reviews relevant legal papers and contracts such as wills, trust documents, tax returns, and insurance policies. It may become necessary at this point for the financial planner to request from the client missing data needed to develop the financial plan.

Once all the information is available, the planner analyzes it to identify strengths and weaknesses in the client's total financial situation with respect to the achievement of stated goals. The planner might find some areas that need immediate attention, such as the adequacy of the emergency fund or the existence of risk exposures that are not adequately covered. Identifying existing or potential problems that can negatively affect the client's ability to achieve objectives is an important part of financial planning. During this stage of the process, the planner also considers the various options available, and evaluates them in terms of appropriateness to the client's situation.

When available resources are compared to the client's objectives, it may be necessary to modify the priority of objectives, the objectives themselves, or the client's attitude about current lifestyle or available resources. Economic conditions are considered in this stage of the process.

Click here for a sample recommended cash flow analysis.