Financial Planning

Financial planning is the process of meeting your life goals through the proper management of your finances. One's goals can include saving for a major purchase, education planning or planning for retirement. The financial planning process consists of several steps that help you take a "snap shot" of where you are today and what you need to do financially to accomplish your targets. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your objectives given your current situation and future plans.

A Certified Financial Planner is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes: cash flow management, contingency planning, education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and succession planning.

The work engaged in by this professional is commonly known as personal financial planning. In carrying out the planning function, he is guided by the financial planning process to create a financial plan; a detailed strategy tailored to a client's specific situation, for meeting a client's specific goals. The key defining aspect of what the financial planner does is that he considers all questions, information and advice as it impacts and is impacted by the entire financial and life situation of the client.


People enlist the help of a CFP (Certified Financial Planner) because of the complexity of performing the following:

  1. Finding direction and meaning in one's financial decisions
  2. Understanding how each financial decision affects other areas of finance
  3. Adapting to life changes to feel more financially secure.

The work of a financial planner, from an individual client or family's perspective are:

  1. To create the maximum probability that all financial goals (anything requiring both money and planning to achieve) are accomplished by the target date
  2. To have a frequently-updated sensible plan that is proactive enough to accommodate any major unexpected financial event that could negatively affect the plan
  3. To make intelligent financial choices along the way (whether to "buy or lease" whether to "refinance or pay-off" etc.).


Financial Planning should cover all areas of the client's financial needs and should aim the achievement of each of the client's goals. The scope of planning would usually include the following: