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Financial Planning

What is Financial Planning?

It’s the process of:

  1. Understanding your current financial situation;

  2. Assessing your current and future cash flow needs or surplus;

  3. Identifying and prioritizing your financial goals; and

  4. Developing a strategy that matches your financial goals with your cash flow situation.

Why is a Financial Plan Important?

An accurate financial plan can serve as a solid foundation to possibly achieving whatever goal you set for yourself or family. Think of it like the foundation a home is built on. The foundation is the starting point for building a solid structure. Your financial plan will serve as this solid foundation. A financial plan is meaningless unless it is based on accurate information, is reasonably attainable based on your current financial and expected cash flow situations, and is followed. Your financial plan can serve as your benchmark and a great way to monitor your progress towards a certain financial goal. Most importantly, you need to believe in your financial plan.


What Are the Various Stages of a Financial Plan?

The following flowchart will assist you in understanding what takes place during each phase of the financial planning process:

Types of Financial Plans

Your financial plan can be either a comprehensive financial plan or a single-issue financial plan. The details of each type of plan is as follows:


Comprehensive Financial Plan

A comprehensive financial plan takes a holistic approach to developing your financial plan. We will start the planning process by obtaining a list of all of your assets, liabilities, income sources and expenses. Next, we will work together to create a financial plan that matches your financial situation with your financial goals. Then, we will implement the financial plan once we have determined that the current plan accurately portrays your attainable financial goals. We will monitor and adjust, if necessary, your financial plan on a continual basis to reflect your current situation. Changes do occur in our lives, and these changes need to be properly reflected in one’s financial plan.


Single-Issue Financial Plan

A single-issue financial plan identifies a specific financial goal that you want to achieve. The single-issue might be creating a college education funding plan, a debt management/reduction plan, a major purchase (i.e., home or second home) plan, or a company stock option analysis plan. We will gather the financial information relevant to your specific financial goal, develop a financial plan that fits your financial and cash flow situation, and monitor and adjust, if necessary, the financial plan on a continual basis.

Meet and Gather Financial Information

Develop Customized Financial Plan

Implement Financial Plan

Monitor and Review

Financial Plan