Financial planning is not just about what you want to do with your money, but what you want to do with your life. Sometimes it’s a very difficult balancing act between your current needs/desires and your future needs/desires. It’s about finding the right trade-offs that will work for you at every stage of your life. It includes investment planning, asset management and retirement planning of course, but it also includes personal risk management and insurance needs, estate planning, sound day-to-day, year-by-year money management, and sound income tax planning. Most importantly, it’s about how all of those pieces fit together to form the optimum financial plan to make your finances work best for you.
The Financial Planning Process Financial planning consists of six fundamental components – Financial Management, Tax Planning, Asset Management, Risk Management, Retirement Planning and Estate Planning. With financial planning, none of the above components are ever dealt with entirely in isolation– it is the integration and interdependencies among these components, as well as the need to analyze and synthesize information presented to formulate strategies, which distinguish financial planning from other forms of financial advice or financial intermediation. Specific product recommendations or sales are not, in and of themselves, financial planning activities. While the process leading up to a specific product recommendation may well involve some financial planning activity, the actual product recommendation clearly falls outside the scope of financial planning. The Financial Planning Steps
The client and MoneyValue Advisor should agree on a time frame for monitoring and evaluating the financial plan. The client and the Advisor will then review the financial plan to assess its progress, to determine if it is still appropriate and to confirm any revisions mutually considered necessary.
In life, almost anything can happen to anyone, at anytime, anywhere. You can’t plan for it, but having a comprehensive financial plan can give you the security of knowing that you will still be able to look after the people you care about.
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The Canadian Institute of Financial Planners (CIFPs)