- Establish and define the client-adviser relationship. ...
- Getting to know you. ...
- Analyse and evaluate financial status. ...
- Develop and present financial planning recommendations and/or alternatives. ...
- Implement the financial planning recommendations.
What are the 6 key areas of personal financial planning?
- Cash reserve levels.
- Cash reserve strategies.
- Debt management.
- Cash flow management.
- Net worth.
- Discretionary income.
- Expected large inflow/outflow.
- Lines of credit.
What are some steps to take in creating a financial plan?
- Step 1 – Defining and agreeing your financial objectives and goals. ...
- Step 2 – Gathering your financial and personal information. ...
- Step 3 – Analysing your financial and personal information. ...
- Step 4 – Development and presentation of the financial plan.
What are the six steps used to create a financial plan quizlet?
- step 1: determine your current financial situation. ...
- step 2: develop your financial goals. ...
- step 3: Identify Alternative Courses of Action. ...
- step 4: evaluate your alternatives. ...
- step 5: create and use your financial plan of action. ...
- step 6: review and revise plan.
What are the 6 steps to financial planning?
- (1) determining your current financial situation.
- (2) developing financial goals.
- (3) identifying alternative courses of action.
- (4) evaluating alternatives.
- (5) creating and implementing a financial action plan, and.
- (6) reevaluating and revising the plan.
What are the 7 steps of financial planning?
- The 7 Steps of Financial Planning.
- Step 1: Understanding the Circumstances.
- Step 2: Identifying and Selecting Goals.
- Step 3: Analyzing the Client’s Situation.
- Step 4: Develop the Plan.
- Step 5: Presenting the Recommendations.
- Step 6: Implementing the Recommendation(s)
- Step 6: Monitor the Plan.
What are the 7 key components of financial planning?
- Budgeting and taxes.
- Managing liquidity, or ready access to cash.
- Financing large purchases.
- Managing your risk.
- Investing your money.
- Planning for retirement and the transfer of your wealth.
- Communication and record keeping.
What are the main components of personal financial planning?
- Financial goals. ...
- Net worth statement. ...
- Budget and cash flow planning. ...
- Debt management plan. ...
- Retirement plan. ...
- Emergency funds. ...
- Insurance coverage. ...
- Estate plan.
What are the key areas of personal financial planning?
- #Number 1: Saving.
- #Number 2: Investing.
- #Number 3: Financial protection.
- #Number 4: Tax Saving.
- #Number 5: Retirement planning:
What are the four areas of financial planning?
A sound financial plan is based around four major elements, known as the four pillars: cash flow, risk, debt, and asset management .
What are good financial questions?
- Are you a fiduciary? ...
- How do you get paid? ...
- What are my all-in costs? ...
- What are your qualifications? ...
- How will our relationship work? ...
- What’s your investment philosophy? ...
- What asset allocation will you use? ...
- What investment benchmarks do you use?
What is the second key of a successful financial plan?
This will also help you to determine how to measure your goals (see making your goals measurable above. The second key to successful savings is to MAKE A PLAN . No matter what your financial goals are, it is important to map out a plan for achieving success. The final key is to SAVE AUTOMATICALLY.
How do you make good financial decisions?
- Create a Spending Plan & Budget. ...
- Pay Off Debt and Stay Out of Debt. ...
- Prepare for the Future – Set Savings Goals. ...
- Start Saving Early – But It’s Never Too Late to Start. ...
- Do Your Homework Before Making Major Financial Decisions or Purchases.
How do you calculate monthly expenses?
To get the average, add up the amount of money spent for 12 consecutive months , then divide by 12. This will give an average of how much has been spent per month. Calculating average monthly expenses usually begins with listing all living costs.
Why is looking at cash flow an important step in a good financial plan?
Answer: Cash flow refers to the constant movement of money, both where and how much you’re spending as well as how much you’re earning in return. Looking at cash flow is an important step in a good financial plan because it can help you determine places where you need to scale back on spending .
What are the three rules of financial planning?
- Rule #1: Keep Debt Under Control.
- Rule #2: Avoid Being House-Poor.
- Rule #3: Aim to Save at Least 10% of Income.
- Rule #4: Don’t Overlook Emergency Savings.
- Rule #5: Be Realistic About Retirement.
- The Bottom Line.
