What is Financial Planning?
Financial planning is a process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals. Many elements may be involved in financial planning, including investing, asset allocation, and risk management. Tax, retirement, and estate planning are typically included as well. Financial planning plays a starring role in helping individuals get the most out of their money. Careful planning can help individuals and couples set priorities and work steadily towards long-term goals. It may also provide protection against the unexpected, by helping individuals prepare for things such as unexpected illness or loss of income. Financial planning may mean different things to different people. For one person, it may mean planning investments to provide security during retirement. For another, it may mean planning savings and investments to provide money for a dependent’s college education. Financial planning may even involve ma
What does financial planning mean to you? Financial planning means different things to different people but the benefit of having a trusted advisor to go to when you are uncertain about your financial issues is valuable. For Grogan Advisory Services, financial planning is the process of meeting life’s goals by strategically managing your financial future. Your financial affairs are complex and require constant evaluation. You need to understand how your financial decisions impact other issues you must manage. A professional financial plan allows you to view each decision as part of the whole so you can consider the short and long term effects on your goals. You will also be able to adapt more easily to life changes and feel confident that your goals remain on track. Financial plans can address: • Estate and wealth preservation • Life, disability and long term care insurance • Retirement planning • Investment analysis • Charitable gifting • Stock option evaluations • Education funding •
Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. The financial planning process as described by CFP Board, consists of six steps that help you take a “big picture” look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
