Financial Planning

What is Financial Planning?

Financial planning is not about money. It is the process of meeting your life goals through proper management of your finances which could include: buying a home, saving for a child’s education, planning for retirement, tax strategy, legacy planning and life events, etc.

There are 6 steps to help you take a “big picture” look at your finances to allow you to work out where you are now, what you may need in the future and what you must do to reach your goals.

This process involves gathering financial information, setting life goals, examining your current financial status and designing a strategy/plan for how you can meet your goals given your current and future plans.

The Best Practices when Approaching a Financial Path

Set measurable goals.

Understand the effect your financials have on other financial issues.

Re-evaluate your financial plan periodically.

Start now – don’t assume financial planning is for when you get older.

Start with what you’ve got – financial planning is not only for the wealthy.

Take charge – you are in control of the financial planning engagement.

Look at the big picture – it’s more than retirement and tax planning.

Don’t confuse financial planning with investing.

Don’t expect unrealistic returns on investments.

Don’t wait for a life crisis to begin financial planning.

What should you know about financial planning?

You may have come across the term “financial planning” recently and wondered what it means. You may have decided to start your own financial planning but are not sure how. Or you may feel like it’s time you found some professional assistance. Whatever the situation, let’s explore more about financial planning and its benefits along with expectations and the importance of financial planning.

The benefits of financial planning

Your plan provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects your short and long term life goals to allow you to adapt more easily to life events, and feel more secure about your finances.

Can you create your own financial plan?

There are many personal finance software packages, magazines and self-help books to assist with creating a financial plan. However, you may decide to seek help from a professional if:

  • You need an expert in certain areas of your finances (i.e. risk level of your investment portfolio).
  • You wish to obtain a second opinion on the one you created.
  • You don’t have the time to create, monitor and implement. 
  • A life event created an immediate need.
  • You need to improve your current financial situation but don’t know where to start.

The Six Steps of Financial Planning

Step 1

Establishing & defining the
client-planner relationship.

Step 2

Gathering client data,
including goals.

Step 3

Analyzing and evaluating
your financial status.

Step 4

Developing and presenting
recommendations and/or alternatives.

Step 5

Implementing the

Step 6

Monitoring the

A financial plan provides a view for each stage of your life.

Let us help you plan it.

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