Financial Planning is a dynamic process. Rarely does one’s initial plan remain static over the years. As your life goals and circumstances change, you may need to update your strategies. Tax law changes may also affect your desired outcomes. With that, regular reviews and modifications may be necessary to facilitate the success of your plan. Below is the general financial planning process as outlined by the Certified Financial Planner (CFP®) Board of Standards, Inc.
1 Your First Meeting
2 Financial Planning Begins: Understanding Your Situation
3 Setting Your Goals
4 Analyzing Your Financial Strengths and Vulnerabilities
5 Developing Financial Planning Recommendations
6 Planner Presents Recommendations
7 Putting Your Financial Plan Into Action
8 Monitor Performance: Expect a Collaborative Partnership
Expect your initial planning process to span three to four meetings before having a full plan implemented. The process can be condensed or expanded as needed.