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The process of analyzing aspects of an individuals personal finances and creating a strategy to improve those areas which need improvement. Financial Planning encompasses 1) creating a snapshot of the individual’s balance sheet, net worth, and cash flow; 2) defining the life goals which take both money and planning to achieve; 3) creating a practical & actionable strategy for the individual to achieve the goals they value most.
This financial planning strategy must take into account not only the individuals time horizon, but their ability and need to take risk in order to achieve their stated goals.
There are five main facets of financial planning:
1) Financial Planning Process & Insurance
2) Investment Planning
3) Income Tax Planning
4) Retirement Planning & Employee Benefits
5) Estate Planning
A comprehensive financial planning strategy can substantially improve an individual’s personal finances and chances for goal achievement success.
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