The Financial Planning Association® defines Financial Planning as an ongoing process involving taking stock of all existing resources, creating a plan to utilize them, and systematically implementing the plan to achieve short-and long-term goals. They stress the plan has to be monitored and reviewed periodically so any necessary adjustments can be made, to assure that it continues to move you toward your financial goals.
The Financial Planners Standards Council defines 6 steps in the Financial Planning Process
1. Establish the client/planner engagement
2.
Gather client data and determine your goals and expectations
3.
Clarify your present financial status and identify any problem areas and opportunities
4.
Develop and present the financial plan
5.
Implement your financial plan
6.
Monitor the financial plan
Initial Meeting
The purpose of the first meeting has several goals including:
Plan Creation
Once we know your current financial situation and objectives, we develop specific recommendations to achieve your goals.
Depending on the complexity of your situation and the scope of the engagement, the plan may contain some or all of the following:
Plan Presentation Meeting
We will have one or more meetings to present and discuss the recommendations and create schedule for implementation, to include specifying responsibilities for each step.
Plan Monitoring
Clients are provided with a review at least annually to assess plan progress, incorporate any changes in circumstances, and refine the scope of the engagement, if necessary.
