Financial Planning

Wed, Jul 16th,2014
A comprehensive evaluation of an investor's current and future financial state is undertaken during financial planning. A financial plan enables an investor to estimate or determine future cash flows, asset values and withdrawal plans. While there is no specific template for a financial plan, most licensed professionals will include knowledge and considerations of an investor's future life goals, future wealth transfer plans and future expense levels in developing the plan. A good financial plan can alert an investor to changes that must be made to ensure a smooth transition through life's financial phases, such as decreasing spending or changing asset allocation. Financial plans should also be fluid, with occasional updates when financial changes occur.