Financial Planning

What is financial planning?

Financial planning as a disciplined, multi-step process of assessing a person’s current financial and personal circumstances against their future goals, and developing strategies that help meet those goals by optimizing the allocation of financial resources. Financial planning is an ongoing process that involves regularly monitoring a client’s progress toward meeting goals, needs, and priorities, a re-evaluation of financial strategies in place and recommended revisions, where and when necessary. 
 
The 7 Steps: 

• Value Proposition: Getting Started

  • In this first step, your financial planner will explain the scope of their services and the value of taking part in the financial planning process. They will discuss how they can support you and what financial planning involves, from creating a plan to helping you put it into action and keeping it up to date as your life changes.​

• Terms of Engagement: Making an Agreement

  • You and your planner agree on how you'll work together. You'll discuss:

    • What services you need?

    • Will they help you with a need in one specific area, or are they drafting a comprehensive financial plan that considers your whole financial picture?

    • Will they help put the plan into action and continue to monitor and modify your plan for you, or will they create a roadmap for you to follow and monitor on your own?

    • What fees are involved and how does your planner get paid?

• Discovery: Learning About You

  • As part of the discovery process, your planner will collect information about your current financial situation, such as your income, expenses, assets, and debts. You’ll discuss your beliefs and attitudes towards money, life, and what is important to you..

• Analysis: Assessing your Situation

  • Now it’s time to carefully look at your options. Your planner will look at different ways to help you reach your goals and figure out which strategies might work best for your situation. This could mean discussing whether to rent or buy a home, move jobs, mitigate the impacts of a life change such as a relationship ending or a change in health, or consider other life decisions to help you achieve your goals.

• Recommendations: Creating and Presenting Your Financial Plan

  • Based on the analysis, your financial planner will suggest specific actions to help you meet your goals. These recommendations are personalized to your unique situation and include guidance on timing and how different strategies work together. Your planner will also explain the pros and cons of each option, so you can make informed decisions with confidence.

• Implementation: Taking Action

  • This is when you put the plan into motion! Remember, without taking action, even the best plan won’t help you reach your goals.

  • Now, depending on the terms of your engagement, your financial planner may help you take these steps or you may do them on your own. This might involve working with other professionals as well, like lawyers or accountants.

• Monitoring: Checking Progress

  • Your plan may need adjustments over time. If ongoing monitoring is part of your agreement, your financial planner will review your financial plan with you and update it regularly as your life changes to keep it on track. Monitoring and review may include updating the scope of your relationship with your planner, noting any new or revised assumptions and recommendations, and identifying and putting specific steps into action.

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