The purpose of financial planning is to help individuals and families achieve their life goals through proper management of their finances. This process allows them to see where they stand financially and determine what steps they must take to reach their objectives.
Financial planning provides direction to financial decisions and gives insight on how each decision affects other financial areas of life. Viewing each financial decision as a whole allows one to consider its effects on short- and long-term goals.
The components of financial planning include, but are not limited to, the following subject fields:
- Financial statement preparation and analysis
- Investment planning
- Income tax planning
- Education planning
- Insurance planning and risk management
- Retirement planning
- Estate planning
Steps in the Financial Planning Process
Personal FinanceFinancial planning is more comprehensive than many professionals suggest. Here's what you should be thinking about when it comes time to make your plan.
RetirementWhat are the pros and cons of owning cash value life insurance in a qualified retirement plan?
TradingAsk yourself these three questions to figure out which strategy is best for you.
Personal FinanceThese three tips will help you determine what is most important to you, and place it at the heart of your financial plan.
Financial AdvisorA financial plan is useless if it never gets put to use. Here are four things to avoid when creating one with a client.
Financial AdvisorAs the old saying goes, you can't take it with you. For this reason, it is important to have a current estate plan in place to protect your family and belongings.
Managing WealthJust as with any investment, you should review your plan to make sure it's meeting your needs.
RetirementThese considerations will help you make a realistic and thorough retirement plan.
Financial AdvisorThese plans resemble 401(k) plans in many respects, but are specially designed for nonprofit entities.