Financial Planning Series: Introduction to Financial Planning

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:

    1. Understanding the client’s personal and financial circumstances
    2. Identifying and selecting goals
    3. Analyzing the client’s current course of action and potential alternative course(s) of action
    4. Developing Financial Planning recommendations
    5. Presenting the Financial Planning recommendation(s)
    6. Implementing the Financial Planning recommendation(s)
    7.  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:

    1. Initiating the financial planning process
    2. Setting your goals
    3. Making a budget
    4. Taking a financial inventory
    5. Setting priorities
    6. Answering: what is asset allocation?
    7. Explaining: what is a Monte Carlo analysis?
    8. Implementing the plan
    9. 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.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

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