The Financial Planning Process

Financial planning is the process of developing strategies to help manage your affairs so you can build wealth, enjoy life’s opportunities and achieve financial security.

While a critical aspect, financial planning is not limited to advice around investments. A financial planner will look at all aspects of your life and lifestyle, your goals and ambitions and develop a strategy that is tailored to your needs. Financial planning strategies are dynamic and responsive to changes in your circumstances in the future.

Developing a plan involves a commitment from both the client and the advisor and will require prospective clients to gather some critical information. The greatest benefits will be gained by those people who are prepared to put in the effort to engage in the process.

A professional financial planner will be of tremendous assistance to those people who are committed to achieving their goals and ambitions.

The Financial Planning Association suggests the process can be described in six steps:

  1. Gathering your financial information;
  2. Identification of your goals and objectives;
  3. Identification of existing or future financial issues;
  4. Preparation of a financial plan;
  5. Implement the recommendations; and
  6. Review and revise at regular intervals.

This process can appear overwhelming at the outset; however the rewards that come from the successful implementation of a professionally constructed strategy can be significant and in many cases considered to be life changing.