steps

6 Steps To Financial Planning

Collecting Data

Identifying Goals & Objectives

Performing a Financial Needs Analysis

Creating a Comprehensive Financial Plan

Periodically Reviewing and Updating the Plan

Step 1: Collecting Data

Identify financial detail of your personal situation and lifestyle by reviewing:

Assets, Liabilities, and Net Worth

Income, Expenses, Lifestyle Preferences

Financial Knowledge and Risk Tolerance

Existing Insurance Protection

Estate Plans, Wills, and Powers of Attorney

Employee and/or Group Benefit Plans

Step 2: Identifying Goals & Objectives

Establish measurable goals such as...

Move to a Bigger Home

Retire by Age 55

Pay for Children's Education

Have a Comfortable Retirement Lifestyle

Put dollar values and time frames to goals

Be aware of the impacts of inflation

Step 3: Analyzing Needs

Review and assess the data, financial goals and objectives to identify and ensure your personal financial needs have:

Specific Priorities, in Order of Importance

Measurable Results in Terms of Cost & Value

Actionable Tasks the Can be Done

Reasonable Expectation of Success

Timetables for Completion

Step 4: The Financial Plan

A Personal Financial Plan provides a:

Complete Picture of Your Personal Finances

List of the Steps, timing and Actions Necessary to Meet Your Financial Needs

Benchmarks to Measure the Progress and Success of Your Efforts

Step 5: Implementing Your Plan

Take the steps necessary to put your plan into action

Neither a Good Plan, Nor Good Intentions are of Any Value If Not Acted Upon

If You Do Not Put Your Plan Into Action, You Can Only Achieve Success By Accident

It Is Very Difficult to Complete Something That You Never Started!

Step 6: Review and Update

Monitor your progress

Review Your Budget and Investments on a Periodic Basis

Revisit Your Goals and Your Entire Financial Plan on a Regular Basis

Summary

Financial Planning is a process to help you manage your affairs today to meet tomorrow's goals.

You are making a valuable investment in your financial future by taking steps now to build your own financial freedom.

Finance Matters, Ltd., 789 Don Mills Road, Suite 803, Toronto, Ontario, M3C 1T5

Phone (416) 421-4440 Fax (416) 421-3878