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The Financial Planning Process

The financial planning process is the process of establishing personal and financial goals and creating a way to reach them. The on-going process involves analyzing all your existing resources, developing a plan to utilize them, then systematically implementing the plan in order to address your short-term and long-term goals. The plan must be monitored and reviewed periodically so that adjustments can be made, if necessary, to help assure that it continues to move you toward your financial goals.

The financial planning process* includes the following steps:

Establish and define the relationship

  • Explain the services to be provided
  • Clearly define the responsibilities of each party
  • Come to an agreement as to the compensation agreement
  • Agree on how long the professional relationship should last

Gather data

  • Provide relevant information and fill out a questionnaire
  • Identify goals, financial resources and obligations
  • Define and prioritize your personal and financial goals
  • Assess your risk tolerance and time horizons
  • Request applicable records and documents

Analyze and evaluate your financial status

  • Analyze and evaluate the information gathered
  • Determine whether or not goals can be met
  • Develop financial strategies
    • Financial suggestions are tailored to address your specific goals
    • Strategies are based on analysis and evaluation of the information provided to you

    Implement the financial suggestions

    • We help you develop the proper approach
    • Decide who should perform which activities
    • Assign responsibility
    • Determine whether we will help you implement our suggestions

    Monitor financial suggestions

    • We will periodically meet to monitor your financial progress
    • We will review and evaluate change circumstances
    • New suggestions can be provided as your life changes

    * Based on information provided by the Certified Planner Licensee Job Analysis Report © CFP® Board of Standards, Inc. All rights reserved.