Financial planning covers assets and liabilities, income and expenditure, taxation, cashflow management, retirement planning, investment planning and financial risk management. Along with insurance planning, and estate planning.
It is a comprehensive process looking at all aspects of personal finance that are required to become financially well organised.
It covers all areas of the client’s financial needs with the end result of achieving of each of the client’s goals as required.
The generalscope of planning would usually include the following:
The personal financial planning process is described in ISO 22222:2005 as consisting of six steps
- Establishing and defining the client and personal financial planner relationship
- Gathering client data and determining goals and expectations
- Analysing and evaluating the client’s financial status
- Developing and presenting the financial plan
- Implementing the financial planning recommendations
- Monitoring the financial plan and the financial planning relationship