Financial Planning Process

Conventional Six Step process

1. Introduction Meeting- Gather your Financial Data
We meet to gain insight into each other. Gather data, establish goals and objectives. This initial meeting ask of projecting your goals or ask where you want to be in coming years.
2. Data Gathering- Identify your goals
Devise strategic solutions that enable you to use financial resources to achieve your lifestyle objectives. Collect comprehensive data on all aspect of your financial life. Here, emphasis is put on analyzing your situation, approach and accounts.
3. Gap Analysis- Identify financial gaps
At this stage, we identify financial issues and gaps created due to discrepancy of your existing and aspired goals. Outline clear course of action, set written recommendations and prepare solutions to match your goals. Large emphasis is put on identifying weaknesses, obstacles and conflicts.
4. Prepare a financial plan
Provide options that describe how to get there. Prepare a statement of advice, which sets out the strategies and recommendations that address your goals and information. It outline a valid pathway that would take you how you can get there where you have always proclaimed for. Evaluate alternatives, risks & opportunity costs.
5. Annual Review
Monitor and re-balance your portfolio periodically, review and revise your plan to ensure it stays up-to-date even in changing lifestyle. Review progress and update it accordingly.
6. Implementation & Financial |Action
• In this step of the financial planning process, you develop an action plan. This requires choosing ways to achieve your goals. As you achieve your immediate or short-term goals, the goals next in priority will come into focus.
• To implement your financial action plan, you may need assistance from others. For example, you may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds.