About Financial Planning
Helping People Take Control Of Their Finances
Financial Planning Standards Board defines financial planning as:
a process of developing strategies to help people manage their financial affairs to meet life goals
Life goals can include buying a home, saving for your child’s education or planning for retirement.
The Financial Planning Process
FPSB’s Financial Planning Process consists of six steps that financial planning professionals use to consider all aspects of a client’s financial situation when formulating financial planning strategies and making recommendations.
The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans. Personal 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 secure that your goals are on track.
The Financial Planning Process consists of the following six steps:
The Value of Financial Planning
As more and more people become responsible for their long-term financial well-being, recent research by Financial Planning Standards Board Ireland finds that most consumers feel challenged by their finances.
However, consumers who work with financial professionals – particularly those who work with the CERTIFIED FINANCIAL PLANNER ™ professionals – feel better prepared to achieve their financial goals.
The Survey found that when consumers work with a financial planner:
to help them manage their money.
to provide peace of mind.
to assist in financing a major life event.
Knowing whom to trust is the biggest barrier to working with a financial professional.
Among consumers surveyed, 68 percent rate “trustworthiness” as a very important consideration when choosing a financial professional – higher than any other consideration. But a similar percentage of consumers say they don’t know whom to trust when it comes to receiving financial advice.
Consumers with a financial plan are more confident,
and those with a written, comprehensive plan are nearly three times more likely to feel strongly confident about achieving their life goals.
Financial planners with the Ceftified Financial Planner certification
earn higher “excellent” ratings from consumers for important characteristics like “honesty and integrity,” “understanding needs and goals,” and “placing my interests first.”