This is the process of developing strategies to assist clients in managing their financial affairs to meet their life goals.
The process of Financial Planning involves reviewing all aspects of a client’s situation across a wide range of financially related activities, including inter-relationships among often conflicting objectives such as the need for long term financing of old age and future health against the short term need for either personal enjoyment and or the financing of borrowings.
The starting point for any Financial Planner in advising clients is to:
- Understand who the client is, what has shaped their outlook on life and financial matters.
- What their current financial position is and how is this likely to evolve in the future if left unaltered.
- What goals and desires they have for themselves and their families.
From this raw data it is possible for a Financial Planner to identify what potential clients have to do to improve their overall financial worth by using not only appropriate financial products but also interacting with their legal and taxation advisers in issues that are conducive to their best interests.