The process of personal financial planning involves formulating, implementing, and monitoring financial decisions. It is a six-step process.
- Establishing and defining the client/advisor relationship.
- Identify your goals and objectives
- Gather data
- Assets, debts, income, and current strategy
- Analyze and evaluate your status
- Establish alternative options to achieve your financial goals including time frames
- Develop and present your financial plan
- Implement recommendations
- Monitor progress and reevaluating the plan as needed
A independent fee-only (fiduciary) financial advisor can provide an objective perspective on your current situation or a decision you are going to take. Sometimes in excitement we focus on just the positive potential outcomes of our decision without acknowledging the potential pitfalls and likelihood of failure.