What is the Financial Planning Process?

What is a Financial Planning Process?

A financial planning process can be broken down into 8 simple steps:

1. Gather financial information and data

An adviser will obtain relevant financial information such as assets and liabilities,

income and expenditure as well as your attitude toward risks.

2. Identify a client’s goals and objectives

What you want to achieve and when you want to achieve it. Your vision for the future.

3. Identify any financial issues

Once an adviser has gathered financial information and has an understanding of the client’s

goals and objectives, they can identify any issues and barriers.

4. Develop a financial strategy

A strategy will be developed and discussed with all the necessary fine tuning required.

This is an important step in the process and a good adviser will make sure it happens as

it allows the process to be interactive rather than dogmatic.

5. Provide a Statement of Advice (financial plan)

Once strategy has been agreed to it will be provided in the form of a ‘Statement of Advice’

which outlines the agreed course of action.

6. Implement the Plan/Recommendations

The written plan is agreed upon and implemented

7. Review, revise and maintain the financial plan

The plan and strategy is reviewed to ensure it is still meeting a your financial needs and

investment goals. This last step is the most important part of the process. Many a good plan

has fallen by the way side through a lack of proper review, apathy and lack of commitment on

the behalf of both adviser and client.

8.  Client feedback and agreeing on the mutually acceptable service arangements.

A proper financial planning review involves much more than a discussion of how your portfolio has

performed over the last year. Find an adviser with a commitment to a comprehensive review process and you will have found a great financial adviser.  There are many areas that stand to benefit from a sound plan and good advice.  You will agree they are not topics that should be left to chance:

• Budgeting

• Investment Planning

• Gearing

• Mortgages

• Fund manager selection

• Superannuation and Retirement Planning

• Social Security

• Tax Minimisation

• Personal Insurance (life, trauma and income protection)

• Estate Planning

• Wealth Creation

Ongoing Relationship

Maintaining an ongoing relationship with your Adviser is critical.

As your guide they join you on your journey towards your financial dreams. A good financial adviser should be able to give you support and answer any questions that may arise along the way. Once again, drawing on the comparison of the relationship between a top athlete and their coach we can see the journey traveled and the success achieved is made possible only by the combined and focused efforts of both parties. We have many more Financial Planning Help Articles Now Available.

It is also important to understand and remember that the financial environment is always subject to change, as the rule books are always being revised and re-written.

It may be important, if not crucial, in some cases for a change in strategy to take place if a particular event occurs or a new law is passed. Detailed and regular reviewing is key and if maintained, both parties may be able to act swiftly and promptly to ensure ongoing, lasting financial success. We have many more Financial Planning Help Articles Now Available.


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