Financial Planning Process
The financial planning process is a time-tested, common sense method of establishing personal and financial goals and creating a way to reach them. It is an ongoing process that involves taking stock of all your existing resources, developing a plan to utilize them, and systematically implementing the plan in order to achieve your short-and long-term goals. The plan must be monitored and reviewed periodically so that adjustments can be made, if necessary, to assure that it continues to move you toward your financial goals.
The financial planning process consists of six steps, performed in sequence and repeated throughout time to keep the financial plans alive and relevant in spite of changes in your personal or family circumstances, your goals, or the legal, financial, and tax environments.
While anyone can engage in financial planning, a professional financial planner is trained to guide clients through the process. And the FPA recommends that when you seek out the services of a financial planner you should insist on a Certified financial plannerTM certificant (CFP®). Only by retaining a CFP® can you be assured of a planner who has demonstrated considerable financial knowledge by passing rigorous examinations, met important experience requirements, and agreed to abide by a stringent code of professional ethics.
You can learn more about the CFP® by visiting the web site of the Certified Financial Planner Board of Standards.