Financial Planning is the process of evaluating and managing the utilisation of financial resources optimally for the achievement of your business and family goals and objectives.
Financial planning helps provide long-term goals by mapping out a financial future.
The financial planning process should be done using the following six stages:
Establish goals and define client-planner relationship:
The first step to financial planning is establishing goals and defining the client-planner relationship. This lays the foundation for the financial planning process and provides clarity about the client’s financial destination.
To this end, the planner will ask open-ended questions about needs, goals, dreams, objectives, risk-appetite, past experience, financial strengths and weaknesses, etc. The financial planner defines their role, responsibilities and services to the client as well as the responsibilities of the client in this process.
Once an agreement is reached about goals and relationship, the process moves ahead.
Gather relevant data:
To formulate a sound financial plan, we gather relevant data through the collection of necessary documents and structured questioning. All the information is documented in order to visualise data and provide prudent recommendations.
Analyse and evaluate data:
The financial and other data gathered is analysed and evaluated by the financial planner to get an in-depth understanding of the client’s situation with respect to their needs, goals and objectives, and determine the gap between the two and the path that must be followed. Based on the services requested, the assessments and analysis will be customised.
Develop the financial plan with recommendations and alternatives:
Based on the analysis and evaluation of the customer data and needs, Orange Financial Planning develops alternatives and recommendations to meet goals and objectives before presenting them to the client.
Client feedback is taken and reviewed. Concerns are addressed, and the plan is revised to the client’s satisfaction. The financial plan is developed by incorporating relevant recommendations and revisions.
Implement the plan:
This can often be the most challenging step because strong and sophisticated plans can be developed and revised but it is still only a document until it’s put into action.
It requires immense focus and discipline to implement the plan and stick with it. Bathurst Financial Planning is here to help encourage each client put their plan into action.
Monitor the progress of the plan:
Plans need to be dynamic and must evolve depending on the clients’ situation and the economic environment.
Monitoring and reviewing the progress of the plan regularly and systematically is an important step in the financial planning process.