Data Gathering Checklist for New Plans

Building a comprehensive financial plan requires extensive documentation. Missing information leads to incomplete analysis and recommendations that may need revision once data gaps are filled. This article provides a complete checklist for gathering the documents, account access, and legal papers needed for new financial plans.

Why Comprehensive Data Matters

Financial planning integrates multiple areas: investments, retirement, taxes, insurance, and estate planning. Each area requires specific documentation. A tax projection cannot be completed without tax returns. Insurance adequacy cannot be assessed without policy declarations pages. Estate planning cannot be evaluated without reviewing wills and trust documents.

Incomplete data gathering creates two problems. First, the plan itself will have gaps or errors. Second, the planning process extends as advisors repeatedly request additional documents, frustrating clients and delaying implementation.

Tax Documents: The Foundation of Financial Analysis

Tax returns provide the most comprehensive view of a client's financial life. They reveal income sources, investment activity, deductions, credits, and overall tax efficiency.

Required Tax Documents

Federal and state tax returns (3 years):

• Form 1040 and all schedules
• State income tax returns
• Any amended returns filed

Three years of returns enable trend analysis and reveal non-recurring items. A client showing $50,000 in capital gains in one year but none in others likely realized a concentrated position, which affects future investment planning.

Current year tax estimates:

• Form 1040-ES payment records
• State estimated tax payments
• Quarterly payment amounts and dates

Payroll documentation:

• Most recent pay stub (shows YTD withholding and deductions)
• W-2 forms from prior years
• 1099 forms for investment and other income

Business-related tax documents (if applicable):

• Schedule C, K-1, or business entity returns
• Quarterly payroll tax filings
• Business asset depreciation schedules

Sample Tax Document Analysis

A review of tax returns might reveal:

Investment and Retirement Account Statements

Account statements verify asset values, holdings, and account types for investment analysis and retirement projections.

Required Account Statements

Brokerage accounts:

• Most recent statements for all taxable accounts
• Cost basis reports for tax-loss harvesting analysis
• Dividend and interest income summaries

Retirement accounts:

• 401(k), 403(b), and 457 plan statements
• Traditional IRA statements
• Roth IRA statements
• SEP-IRA or SIMPLE IRA statements (if applicable)
• Pension benefit statements (if applicable)

Other investment accounts:

• 529 education savings account statements
• HSA statements
• Custodial accounts (UTMA/UGMA)
• Annuity contract statements

Account Access Requirements

Beyond statements, many planning tools require read-only account access for ongoing monitoring and aggregation.

Typical access methods:

• Account aggregation platform credentials (Plaid, Yodlee)
• Read-only advisor access granted through the institution
• Shared login credentials (less secure, not recommended)

Sample account inventory:

Insurance Policy Documentation

Insurance analysis requires policy documentation beyond just knowing coverage exists.

Life Insurance Documents

• Policy declarations page showing face amount and premium
• Policy type (term, whole life, universal life, variable)
• Policy illustration (for permanent insurance)
• Beneficiary designations
• Cash value statements (for permanent policies)

Disability Insurance Documents

• Group disability certificate of coverage
• Individual disability policy documentation
• Benefit amount, definition of disability, and elimination period
• Rider documentation (cost of living, own occupation)

Property and Casualty Insurance

• Homeowners declarations page (coverage limits, deductibles)
• Auto declarations page (liability limits, coverage types)
• Umbrella policy documentation
• Jewelry, art, or other valuable items riders

Health Insurance

• Current plan summary (deductible, out-of-pocket maximum, premiums)
• HSA or FSA documentation
• Medicare documentation (for those 65+)
• Long-term care insurance policies

Sample insurance summary:

Legal Documents

Estate planning analysis requires review of all legal documents affecting wealth transfer and incapacity planning.

Estate Planning Documents

Wills:

• Last will and testament for each spouse
• Date of execution
• Named executor and alternates
• Specific bequests and residuary provisions

Trust documents:

• Revocable living trusts
• Irrevocable trusts (life insurance trusts, grantor trusts)
• Trust schedules showing funded assets
• Trustee designations and succession

Incapacity planning documents:

• Durable power of attorney (financial)
• Healthcare power of attorney
• Living will / healthcare directive
• HIPAA authorization

Beneficiary Designations

Beneficiary designations supersede will provisions for retirement accounts, life insurance, and other payable-on-death accounts.

Required beneficiary documentation:

• 401(k) and IRA beneficiary forms
• Life insurance beneficiary designations
• Annuity beneficiary designations
• POD/TOD designations on bank and brokerage accounts

Sample beneficiary audit:

The brokerage account audit reveals a potential issue: the TOD designation was last updated in 2015 and lacks contingent beneficiaries.

Business Documents (if applicable)

• Entity formation documents (operating agreement, bylaws)
• Buy-sell agreements
• Business valuation reports
• Shareholder or partnership agreements
• Employment contracts and non-compete agreements

Data Gathering Timeline

Comprehensive data gathering typically requires 2-4 weeks. Setting expectations upfront prevents frustration.

Week 1: Initial Request

• Send comprehensive document checklist to client
• Provide secure upload portal or encrypted email instructions
• Schedule follow-up call to answer questions about requirements

Week 2: Primary Collection

• Client gathers and uploads tax returns, statements, policies
• Advisor reviews submitted documents and identifies gaps
• Send reminder for missing items with specific list

Week 3: Gap Filling

• Client obtains documents from third parties (attorneys, insurance agents)
• Advisor requests account access through aggregation platforms
• Verify all beneficiary designations are current

Week 4: Verification and Organization

• Confirm all required documents received
• Organize documents in client file
• Prepare data summary for planning team
• Schedule plan development kickoff

Document Organization System

Organize collected documents in a consistent structure for efficient plan development.

Recommended folder structure:

Client Name/
├── Tax Returns/
│   ├── 2024/
│   ├── 2023/
│   └── 2022/
├── Statements/
│   ├── Retirement Accounts/
│   ├── Brokerage/
│   └── Banking/
├── Insurance/
│   ├── Life/
│   ├── Disability/
│   └── Property-Casualty/
├── Legal/
│   ├── Estate Documents/
│   └── Beneficiary Forms/
└── Summary Documents/

Checklist: Complete Data Gathering

Tax Documents

• Federal tax returns (3 years)
• State tax returns (3 years)
• Current year pay stubs for all household earners
• W-2 and 1099 forms
• Estimated tax payment records
• K-1 forms (if partnership or S-corp ownership)

Account Statements

• All bank account statements
• All taxable brokerage account statements
• 401(k) / 403(b) / 457 statements
• Traditional IRA statements
• Roth IRA statements
• 529 plan statements
• HSA statements
• Annuity statements
• Cost basis reports for taxable accounts

Account Access

• Establish aggregation platform connections
• Request advisor access where available
• Verify data accuracy after connection

Insurance Policies

• Life insurance declarations and beneficiaries
• Disability insurance certificates
• Homeowners declarations page
• Auto declarations page
• Umbrella policy documentation
• Long-term care policies
• Health insurance summary

Legal Documents

• Wills for all adults in household
• Trust documents and schedules
• Durable power of attorney
• Healthcare power of attorney
• Living will / advance directive
• All beneficiary designation forms
• Business agreements (if applicable)

Verification

• All documents reviewed for completeness
• Beneficiary designations audited for consistency
• Account balances reconciled to statements
• Insurance coverage amounts verified
• Estate documents checked for current information