How a Financial Planner Can Help You
Making Your Financial Dreams Come True
Like most people, you have hopes and dreams and life goals for yourself and your family. These might include buying a home or business …saving for college education for your children …taking a dream vacation …reducing taxes …retiring comfortably. Financial planning is the process of wisely managing your finances so that you can achieve your dreams and goals while at the same time helping you negotiate the financial barriers that inevitably arise in every stage of life.
Managing your personal finances is ultimately your responsibility. However, you don’t have to do it alone. A qualified financial planner, such as a CERTIFIED FINANCIAL PLANNER™ licensee, can help you make decisions that make the most of your financial resources.
Financial planning can help you.
- Set realistic financial and personal goals
- Assess your current financial health by examining your assets, liabilities, income, insurance, taxes, investments and estate plan
- Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financial strengths
- Put your plan into action and monitor its progress
- Stay on track to meet changing goals …changing personal circumstances …changing stages of your life…changing products …markets and tax laws
Do you need the services of a financial planner?
How do you know if you could benefit from the services of a qualified financial planner? You may not have the expertise, the time or the desire to actively plan and manage certain financial aspects of your life. You may want help getting started. You may benefit from an objective, third-party perspective on what are often emotional, difficult decisions. And in today’s hectic world, it can be beneficial just to have a financial expert looking over your shoulder to double-check your planning efforts and make sure you stay focused and follow through with your financial plans.
Events that might prompt you to seek the services of a planner.
Often a specific event or need will trigger the desire for professional financial planning guidance. These might include:
- Saving enough for retirement, or rolling over a pension
- Handling the inheritance of a large sum of money or another unexpected financial windfall
- Preparing for a marriage or divorce
- Planning for the birth or adoption of a child
- Facing a financial crisis such as a serious illness, layoff or natural disaster
- Caring for aging parents or a disabled child
- Coping financially with the death of a spouse or close family member
- Funding education
- Buying, selling or passing on a family business
The Scope
Financial planning should cover all areas of the client’s financial needs and should result in the achievement of each of the client’s goals as required. The scope of planning would usually include the following:
- Risk Management and Insurance Planning – Managing cash flow risks through sound risk management and insurance techniques
- Investment and Planning Issues –Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending, including managing for risk-adjusted returns and to deal with inflation
- Retirement Planning – Planning to ensure financial independence at retirement.
- Tax Planning – Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes
- Estate Planning – Planning for the creation, accumulation, conservation and distribution of assets
- Cash Flow and Liability Management – Maintaining and enhancing personal cash flows through debt and lifestyle management
The Process
The personal financial planning process is consisting of six steps:
Step 1: Establishing and defining the client and personal financial planner relationship
Step 2: Gathering client data and determining goals and expectations
Step 3: Analysing and evaluating the client’s financial status
Step 4: Developing and presenting the financial plan
Step 5: Implementing the financial planning recommendations
Step 6: Monitoring the financial plan and the financial planning relationship