Comprehensive
NAPFA's membership requirements include proof that a financial advisor can produce a comprehensive financial plan for a client. Proof is demonstrated through peer review of a financial plan submitted by the prospective NAPFA member. The plan can either be from an actual client with whom the advisor is working, or it can be a plan produced from a sample set of facts and situations developed by NAPFA to test a candidate's knowledge.
The plan must contain numerous specific elements that are common needs of many individuals and families. These include the following: a client's goals and objectives, net worth statement, cash flow analysis, recent tax return and analysis, insurance needs (medical, home, life, disability, long-term care, auto, umbrella, other), investment analysis and recommendations, retirement needs and projections, and estate plan and related elements (will, Advance health care directive, durable power of attorney, etc.).
Read more about this topic: National Association Of Personal Financial Advisors