Financial Planning Process
Finance………make we hard to think, exspecially if we can’t manage it. Beside we must write the financial planning books we also needs a process. Because if we doesn’t the process I’m sure that we will feels loss. Financial planning is the process of meeting your life goals throught the proper management of your finances.
Before we talk about the process we should know what common mistakes consumers make in financial planning such as :
* not make financial goals
* confuse with financial planning
* think that financial planning just for rich people
* they late in make financial planning because they make it in when they getting old
* think that using a financial planner means losing controls
* wait until money crisis to begins financial planning
Why we must know the finansial mistakes first before we know the process, because when we know what mistakes we must avoid we can advance with make a financial planning for our life, and after we made it we watch the proses what we gonna doing.
Financial planner process is consist of 6 things such as :
* establishing and defeniting the client planner reationship it mans that they should clearly explain or document the services to provided and define both and what is our responsibilities and also explain fully how he will be paid and by whom.
* gather all the necessary documents before and ask our financial conditions
* analyze the information to access the curent situation and determine what we gonna do to reach our goals
* implemeting the financial planning recomendations
* monitoring the financial planning recomendation with report it in periodic times.
IF you feels you don’t understand about the proses it’s better to you decice to seek help a profecional financial planner because they can help your current financial situation, improve you managing your finance, and also they can help you evaluated the risk in your portofolio investation because this can change your life.
Maybe if we bucket the financial process here are the process :
Holistic Audit—>family goal setting—>analysis and design—>finding and recomendation—>implementation (estate plan, investment plan, retirement plan and business owner plan)—>monitoring