A strong planning process is a good way to create a strong, flexible investment plan.
A transparent, effective planning process is based on two key aspects of financial planning: preservation and access to funds when needed. A plan must seek to ensure liquidity, to allow its owner to access funds when needed. It must also take into account key stages of life. This can include preparing for events such as retirement, death, and in the event of disability and/or critical illness.
With these goals in mind, the first step in building a comprehensive plan is to assess total financial needs.
This involves a consideration of important milestones such as retirement, insurance, major purchases and educational costs, as well as ongoing financial management strategies.
This goal-based financial planning approach is designed to help:
- Define customized short-and long-term goals that ensure only the right financial services are chosen
- Identify roadblocks or gaps that might impact the financial strategy
- Continually monitor the plan to ensure it meets changing needs and circumstances
What is Investment Planning?
Investment planning is about more than preparing for retirement. It’s about working toward short- and long-term goals, and helping to plan for the most important things in life.
A strong plan is developed in collaboration with the advisor, and includes a balance of investments that are flexible enough to address changing needs across a client’s personal and professional life.
The first step toward achieving a strong investment plan is creating a strategy that is aimed to:
- Prepare for a secure, comfortable retirement
- Manage current taxes
- Pro-actively manage and control debt
- Help prepare for a child’s college education
- Provide for loved ones or heirs in the event of death, disability or critical illness
- Protect businesses and their employees