Why is it called a financial planning PROCESS anyway?
Many people go to a financial planner and just want the bottom line answer. This is not always feasible or appropriate as proper financial planning is a process, not an event. The Certified Financial Planner Board of Standards defines financial planning as “the process of determining whether and how an individual can meet life goals through the proper management of financial resources. Financial planning integrates the financial planning process with the financial planning subject areas.”
There are six steps to the financial planning process:
1: Establishing and defining the client-planner relationship
2: Gathering client data including goals
3: Analyzing and evaluating the client’s current financial status
4: Developing and presenting recommendations and/or alternatives
5: Implementing the recommendations; and
6: Monitoring the recommendations
Learn more about the financial planning process by clicking HERE.