Solving everyone’s unique financial challenges with cookie-cutter financial planning services is impossible. Since people lead different lives and use money differently, the best thing to do is create a unique financial plan catered to one individual’s life.
A financial plan is a personalized document that incorporates your current income, expenses, liquid net worth, and financial goals for the near and long term. It features a roadmap you can follow and modify throughout your life so you can enjoy your life and stress less about money.
Financial planning is the iterative process of creating a financial plan and then actively monitoring and updating it as circumstances in your life change, whether related to your career and income, family and health, or lifestyle choices and your retirement plans.
Some individuals and couples may independently create and maintain a financial plan, often using online resources like budgeting tools, spreadsheets, and robo-advisors. But many people prefer the help of a financial advisor with expert knowledge and experience in financial planning.
A Certified Financial Planner (CFP) is a good choice for people interested in a financial advisor with demonstrated experience and education in offering financial planning services to their clients. Many CFP professionals also provide their clients with wealth management services and financial planning.
On the surface, financial planning appears straightforward. Taking a snapshot of an individual or couple’s financial picture today and understanding their goals for the future provides many of the necessary inputs to create a tailored financial plan.