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Financial Planning Explained

What Is Financial Planning?

Financial planning is the process of working towards your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement.

The financial planning process consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to pursue your goals.

The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan designed to help meet your goals given your current situation and future plans.

The Benefits of Financial Planning

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more confident that your goals are on track.

The Financial Planning Process consists of the following six steps:

  1. Establishing and defining the client-planner relationship.
  2. Gathering client data and establishing goals.
  3. Analyzing and evaluating your financial status.
  4. Developing and presenting financial planning recommendations and/or alternatives.
  5. Implementing the financial planning recommendations.
  6. Monitoring the financial planning recommendations.

Fee-based Financial Planning

At Granite Wealth Management we believe that confidence comes from having a plan. Whether you are planning for retirement, living in retirement or any other financial goal, we have the experience and resources to help you toward pursuing your goals.

For more detail on Certified Financial Planning, please visit the CFP Board.