Developing a Financial Plan

The key to effective financial planning is the ability to take into account all relevant aspects of a financial situation and to identify and analyze the connection among sometimes conflicting objectives. In other words: LOOK AT THE BIG PICTURE.

Financial planning is more than just procedures, it is a comprehensive and continual process that assists individuals and families meet their life goals through the organization of their financial matters.

Financial planning professionals abide by a six step process when working with clients:

  1. Establish the engagement

    • This step should include explaining the services, the process, the compensation, and the responsibilities of both the client and the planner.

  2. Gather client data; establish goals and objectives

    • This step includes the collection of information about financial resources (income and assets) and obligations (expenses and liabilities) through interviews and/or questionnaires. It will also include discussions on values, preferences and the financial outlook as they relate to reaching your goals.

  3. Preparation of the financial plan and identification of issues and/or opportunities

    • This step includes the preparation, review and analysis of the financial model (cash flow, net worth, tax projections, etc.) and the identification of any issues that require attention.

  4. Present the financial plan

    • This step includes reviewing your current situation and the development of an action plan to reach your goals and objectives.

  5. Implementation of the financial plan

    • This step involves putting into place the strategies identified in the financial plan.

  6. Monitor the financial plan

    • This step involves reviewing the financial situation on a periodic basis to identify how changes in a client’s financial, life situation, or economic circumstances have impacted the plan.

Critical to the process will be to find the right financial planner. When you engage the TRIO Financial Planning firm, you will work with Certified Financial Planning professionals. Each has undergone the extensive educational requirements as well as ongoing education required to ensure you receive the highest quality financial planning advice.

For further information on the financial planning process and what to consider when choosing a planner, please consult the Financial Planning Standards Council website www.fpsc.ca

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