What is financial planning?
“Financial Planning is a collaborative process that helps maximize a Client’s potential for meeting life goals through Financial Advice that integrates relevant elements of the Client’s personal and financial circumstances.”
Financial Planning Process
- Understanding the Client’s Personal and Financial Circumstances
The process begins by establishing a quantitative and qualitative picture of who the client is and what they want to achieve financially.
- Identifying and Selecting Goals
Using the information identified in step one, the financial planner helps the client identify and select goals.
- Analyzing the Client’s Current Course of Action and Potential Alternative Courses of Action
This step establishes whether the client is moving toward their financial goals and if not, identifies alternative recommendations to do so.
- Developing the Financial Planning Recommendation(s)
At this point, the financial planner evaluates and selects the recommendations they believe will help meet the client’s goals.
- Presenting the Financial Planning Recommendation(s)
Here the financial planner shares the recommendations and the thought process behind them to help the client make an informed decision about whether the recommendations are a good fit.
- Implementing the Financial Planning Recommendation(s)
Often the most difficult step, this requires the client to have the desire and discipline to put the plan into action with the support of their financial planner.
- Monitoring Progress and Updating
Because financial planning is a process and not a single end-point, the plan is continuously monitored and adjusted as the client’s life evolves.