Financial Planning Process

While deciding what you want to do when you retire is usually pretty easy, figuring out where the money will come from to pay for it can be more difficult. There are 6 steps to follow that will help to ensure you achieve financial success in the future.

Setting goals and Objectives

This is the foundation in any sound financial plan, to know where you are going, and to be specific in your objectives. The importance of this step cannot be overemphasized. Goals can range from wanting to secure a comfortable retirement, providing for your children’s education, vacation property, paying off your mortgage early, etc.

Data gathering

This is the starting point, where you will want to find out precisely what your present financial circumstances are. This entails compiling important information such as your cash flow, net worth, insurance coverage, etc. You need this information before you can determine what your future strategies.

Analysis

At this stage, your advisor will analyze the various options available to you that will help you reach your goals.

Recommendations

Your advisor will recommend an overall plan and the best course of action to take, out of the options available. You will then both come to an agreement on strategies.

Implementation

The above steps will be pointless unless you implement and execute the plan of action agreed upon.

Follow up

It is important to periodically review your progress. In addition, as circumstances change, you can adapt your plan accordingly.