Steps of the Financial Planning Process
Most people spend more time planning for their next vacation than planning for their retirement.
When someone hears the term Financial Planning, it can mean a lot of different things for different people. When I think about Financial Planning, I think about how I can do the things that I want and obtain my goals in the most financially efficient way achievable.
In order to clarify what Financial Planning is, I have created a series of articles to break down some of the steps of the Financial Planning process and what you should expect when you sit down with a Certified Financial Planner (CFP®).
The CFP® Board breaks the Financial Planning process down into seven steps:
- Understanding the client’s personal and financial circumstances
- Identifying and selecting goals
- Analyzing the client’s current course of action and potential alternative course(s) of action
- Developing Financial Planning recommendations
- Presenting the Financial Planning recommendation(s)
- Implementing the Financial Planning recommendation(s)
- Monitoring progress and updating
In order to simplify and clarify what these steps involve, I will discuss how we work with clients on these items and what you should expect when you sit down with a Financial Planner.
My goal is to help you reach your goals using Financial Planning. In this nine-part series, I will take you through the following steps:
- Initiating the financial planning process
- Setting your goals
- Making a budget
- Taking a financial inventory
- Setting priorities
- Answering: what is asset allocation?
- Explaining: what is a Monte Carlo analysis?
- Implementing the plan
- Monitoring the plan
Advisory services offered through Sikich Financial, an SEC Registered Investment Advisor.
Securities offered through Triad Advisors, Member FINRA and SIPC. Triad Advisors and Sikich Financial are not affiliated.