Financial Planning

Financial Planning is a process of providing advice and assistance to clients to determine whether and how clients can meet their financial needs and life.s goal through proper management of financial resources. It is six step process as given below:

Establishing and defining the client . planner relationship
The Financial Planner should clearly explain or document the services to be provided and define the responsibilities. The planner should explain fully how he will be paid and by whom. The planner should also disclose any restrictions on his ability to give unbiased advice and disclose any conflicts of interests. The planner should agree on how long the professional relationship should last and how decisions will be made.

Gathering client data & goals
The Financial Planner should ask for information about the financial situation. The planner should mutually define the personal and financial goals, understand the time frame for results and discuss, if relevant, how one feel.s about risk. The Financial Planner should gather all the necessary documents before giving the advice.

Analyzing and evaluating the financial status of the clients
The Financial Planner should analyze the information to assess the current situation and determine what one must do to meet thegoals, depending on what services have been asked. For this one could include analyzing the assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.

Developing and presenting Financial Planning recommendations and/or alternatives
The Financial Planner should offer Financial Planning recommendations that address the goals, based on the information provided. The planner should go over the recommendations with the client to help and understand them so that one makes informed decisions. The planner should also listen to the client.s concerns and revise the recommendations as appropriate.

Implementing the Financial Planning recommendations
The planner and the client should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your .coach., coordinating the whole process along with professionals such as solicitors or stockbrokers.

Monitoring the Financial Planning recommendations
The planner should agree on who will monitor the progress towards the client.s goals. If the planner is in charge of the process, he/she should report personally to review the situation and adjust the recommendations, if needed.