What is personal financial planning?
It is a SIX-STEP process that ranges from enabling a client to create a personal profile, including the construction of a current financial position (assets, liabilities and cash-flow) and a clearly stated/written set of goals/objectives to the implementation and evaluation/review of the plan by a financial planning professional.
As a discipline, financial planning generally categorizes this process as follows:
- Defining client relationship that includes, but is not limited to:
Gathering all relevant data
Analyzing, evaluating and understanding the client’s financial condition
Dissecting client data, drafting and presenting a recommended financial plan
Evaluating and monitoring performance of recommendations, including refining/modifying strategies, if necessary, as circumstances change
- Establishing client’s current financial status, an assessment of assets (what you own) and liabilities (what you owe) to determine your “Net Worth”
- Drafting an informal personal budget
- Drafting a cash-flow schedule, showing all known and expected sources of income and expenses, making sure any gaps or shortfalls are adequately addressed
- Establishing or setting realistic and achievable financial goals and objectives
- Developing a preliminary written plan, a roadmap of how you plan to achieve your goals
Each of life’s key priorities presents great opportunities and enormous challenges. Solutions to these challenges require varying approaches, tools and strategies, and your BFS consultant has the expertise, knowledge and resources to guide you through the financial maze.
We will design a financial strategy that would best help you achieve your own desired goals through the integration of basic financial planning functions with your personal needs for a more robust approach.
Listed below are those functions and some personal needs that vary from one individual to another.
- Planning for College
- Planning for a new baby
- Budgeting and Cash Management
- Planning for unexpected emergencies
- Buying your first dream house
- Investment Planning
- Tax Planning
- Risk management/Insurance
- Retirement planning
- Estate Planning
- Business Planning, which deals with such issues as employee benefits, business
valuation, expansion and exit strategy
No matter which key priorities you are planning, your BFS financial consultant will work with you to design the appropriate investment solutions for you. By following sound and proven fundamental financial planning principles, our approach will consider numerous variables relative to the following elements/characteristics:
- Paying yourself first, so you will not spend it
- Effect of inflation
- Diversification – idea of not putting all your eggs in one basket
- The penalty of procrastination – time is on your side, start early
- Asset allocation – balances risks and rewards (returns)
- Paying lower, avoiding or postponing taxes through tax-deferred investing
- Dollar-cost averaging – investing the same amount of money each month into an
investment (stock or mutual fund), so you can rest easier at night
- Minimizing risk exposure by building a smart portfolio of investments
Financial planning is a dynamic and an ongoing process that must be periodically reviewed and refined just as your circumstances change. Know that a BFS financial consultant is your service partner, ready and available to work with and guide you through the key processes towards your ultimate goal of attaining real financial independence for life.
FOR MORE DETAILED INFORMATION ON ANY ASPECTS OF FINANCIAL PLANNING MENTIONED HERE, PLEASE CONTACT A BFS FINANCIAL
CONSULTANT AND SEE WHAT WE CAN DO FOR YOU TODAY!!!