Financial Plan

Filed Under »
Dictionary Says

Definition of 'Financial Plan'

A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.

Most individuals work in conjunction with an investment or tax professional and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing the plan. These will be used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.
Investopedia Says

Investopedia explains 'Financial Plan'

While there is no specific template for a financial plan, most licensed professionals will include knowledge and considerations of the client's future life goals, future wealth transfer plans and future expense levels. Extrapolated asset values will determine whether the client has sufficient funds to meet future needs.

A good financial plan can alert an investor to changes that must be made to ensure a smooth transition through life's financial phases, such as decreasing spending or changing asset allocation. Financial plans should also be fluid, with occasional updates when financial changes occur.

Articles Of Interest

  1.

    Start Your Own Financial Planning Firm

    Read on to find business tips to make your dream a reality.

  2. 7 Counterintuitive Retirement Strategies That Work

    We address seven investment misconceptions, and how you can make your retirement plan make sense.

  3. Financial Planning: It's About More Than Money

    Determine what you need to do now to make a drastic lifestyle change later.

  4. Starting Early With Financial Planning

    You can achieve your financial goals if you start early enough. Here are some tips.

  5. How To Effectively Use Financial Planning Software

    The right financial planning software provides clients with reports that help them achieve their financial goals.

  6. Tailoring Your Investment Plan

    Start your own investing adventure with the help of some simple guidelines.

  7. Sneaky Strategies That Fuel Overspending

    Find out how to avoid six of the worst vender ploys this holiday shopping season.

  8. Money Can't Buy Retirement Bliss

    Emotional snags can ruin your future happiness. Learn how you can avoid them.

  9. 5 Retirement Questions Everyone Must Answer

    Find out what information you need to guide your planning and achieve your goals.

  10. Studying For The CFP Exam

    Learn the tips and tricks of the trade before heading into this test.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.

  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=4824025c27fb0548ce935327a19315df