As name indicates , it include each and every financial thing in your life which can be planned. It includes your present cashflow to projected futuristic cashflow, your debt management, risk management ( Insurance ), investment planning, retirement planning, tax planning and estate planning. In short comprehensive financial planning try to cover your personal finance at 360º.
This is a holistic approach like doing whole body medical check up and write prescription according to the requirement of the patient.
The comprehensive financial planning is a six step process and is followed by all professional financial planners across the globe. These are :
1) Establishing the relationship with client.
2) Data gathering and goal setting
3) Identification of financial problems
4) Preparation of written solution and recommendation.
5) Implementing the recommendations agreed by client.
6) Review and revision of the financial plan.
Let’s elaborate a little:
1) Establishing the relationship with client :
The first meeting between you and us to write a comprehensive financial plan. It is the beginning of an holistic approach, where we both should be honest and transparent in every aspects of our discussion.
2) Data gathering and goal setting :
After completion of first step, if you permit us to go ahead, then we start gathering your all relevant data to construct an effective financial plan.
The financial goal can be segregated into three parts :
| a. | Short term goal | b. | Medium term goal | c. | Long term goal |
We need to consider your all types of goals first and then giving priority to them according to your requirement.
3) Identification of financial problems :
In this step we try to examine your current financial position. We try to identify what are the strengths and weaknesses in your personal finance.
4) Preparation of written solution and recommendation :
After considering all aspect of your personal finance, we give written recommendation , what we fill appropriate at your best interest. We always love to explain our recommendation thoroughly till your last doubt.
5) Implementing the recommendations agreed by client. :
When you give us the green signal on our recommendation, our next focus is the implementation of written plan in smoothest way.
6) Review and revision of the financial plan. :
The final and most crucial step. Without periodic review and revision, best plan may fail to deliver you the result, which you desire. Because in this fast changing competitive world, a good product may loose its edge or your priorities may be changed due to change of your personal situation or normal rebalancing of your portfolio as planed, etc. So, this last step is continuous process to make your financial plan fit and fine.