You may have come across the term “financial planning” and
wondered what it means. You may have decided to start your own
financial plan but you’re not sure how. Or you may feel it’s time you
went to a financial planner for some professional advice. Whatever
your situation, the following information can help you decide what’s
right for you.
This brochure explains financial planning and its benefits. It
describes what you should expect and highlights the importance of
your role in the financial planning process. The answers to some
common questions about financial planning are also provided.
What you should know
about Financial Planning
The Financial Planning Process
and its benefits
What is Financial Planning?
Financial planning is the process of meeting
your life goals through the proper management
of your finances. Life goals can include buying a
home, saving for your child’s education,
planning for retirement or estate planning.
The financial planning process consists of
six steps that help you take a “big picture” look
at where you are financially. Using these six
steps, you can work out where you are now,
what you may need in the future and what you
must do to reach your goals.
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 goals given your current
situation and future plans.
The Benefits of Financial Planning
Financial planning provides direction and
meaning to your financial decisions. It allows
you to understand how each financial decision
you make affects other areas of your finances.
For example, buying a particular investment
product might help you pay off your mortgage
faster or it might delay your retirement
significantly. By viewing each financial decision
as part of a whole, you can consider its short
and long-term effects on your life goals. You can
also adapt more easily to life changes and feel
more secure that your goals are on track.
Can You Do Your