What is Financial Planning?

What is Financial Planning?

In the purest sense, financial planning is, quite simply, cash flow planning. It is planning to have available the amount of cash needed at the time it is needed, or in the hands of the desired person, to accomplish an individual’s financial goals.

The steps taken to implement a financial plan will be in response to these cash flow goals. For example, if a couple is currently retired and their only source of cash to maintain their lifestyle is the limited investments in their Individual Retirement Accounts (IRAs), those investments will need to be structured more for current income and less for appreciation. On the other hand, if the couple is comfortable that they have more than enough assets to handle their personal financial needs for the rest of their lives, they may allocate more of their investments for growth in order to enhance their ultimate bequests to their children or to charity.

Financial planning can also be defined as:
1. creating order out of chaos;
2. a deliberate and continuing process by which a sufficient amount of capital is accumulated and conserved and adequate levels of income are attained to accomplish the financial and personal objectives of the client;
3. the development and implementation of coordinated plans for the achievement of a client’s overall financial objectives;
4. income tax planning, retirement planning, estate planning, investment and asset allocation planning, and risk management planning in addition to many other areas of financial planning.
Please contact my firm today for a Free initial consultation on how financial planning can be a benefit to you and/or your family today.

I would be delighted to meet with you!

Yolanda Robinson, Owner