The financial planner is a professional who prepares financial plans for people to reach their long-term financial goals. Here are six key steps of a financial planning process.

  1. Establish a client-planner relationship
    You must have conversations with the client to determine their financial goals. Establish the terms as well as limitations. Understanding your client will ensure a successful relationship.

  2. Gather the client’s data
    Before any plan can be analyzed, a financial planner has to get the clients’ historical data. In this step, we gather the quantitative and qualitative data.

  3. Analyze their financial status
    Using their expertise, the financial planner will be able to review all of the client’s documents and understand it for analysis.

  4. Present recommendations
    Based on the data, it is important for the planner to go through different options to ensure the client’s financial success. It is the job of the financial planner to provide their recommendations based on the client’s financial goals.

  5. Implement recommendations
    Once the chosen plan is finalized, they would go ahead and implement the plan.

  6. Monitor the progress
    Keeping an eye on the progress will ensure that the client is moving towards the right direction of their financial goals. Monitoring will allow you to make any necessary changes and update the plan if goals are not being met.
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