Financial Planning: Process and Rules - Financial Planning Process

Preparation for the CFP® Certification Exam and a career as a financial planning practitioner should begin with a fundamental question: What exactly is financial planning? It is a question likely to be answered somewhat differently by each practitioner and each client.

The Certified Financial Planner Board of Standards, which formulates and administers the CFP® exam, defines financial planning as a six-step process that allows individuals and families to determine whether and how they can meet their life goals through the proper management of financial resources. These goals can include retiring at a certain age, saving enough money to send a child to college or buying a new home.

In this section, we will review this process and the six steps that make it up.

References:
Leimberg, Satinsky, Doyle, Jackson, Tools & Techniques of Financial Planning, 7th edition, Chapter 3
Hallman, Rosenbloom, Personal Financial Planning, 7th edition, Chapter 1
Purpose, Benefits and Components


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