ABOUT PERSONAL FINANCIAL PLANNING
Personal financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement.
The personal financial planning process consists of six steps that help you take a holistic approach to assessing where you are financially. Using these steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
Personal financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.
THE FINANCIAL PLANNING PROCESS
The personal financial planning process consists of the following six steps:
- Establish and define the client-planner relationship.
- Gather client data, including goals.
- Analyze and evaluate your financial status.
- Develop and present financial planning recommendations and/or alternatives.
- Implement the financial planning recommendations.
- Monitor the financial planning recommendations.
If you have any questions about the Financial Planning process or how a Certified Financial Planner ™ can help you or would like to arrange a meeting contact Damien at: firstname.lastname@example.org or phone Damien on 021 4273334 and he’d be delighted to speak to you.