Finanicial Planning Overview
Financial planning is the process of creating strategies, considering all relevant aspects of an individuals financial situation, to manage their financial affairs to meet life goals.
It is a systematic, comprehensive process that helps individuals and families create and preserve wealth and financial security.
As both a Certified Financial Planner and a Certified General Accountant John Costen is fully qualified to offer objective, integrated, and comprehensive financial planning advice to help individuals achieve their financial objectives
The two types of Financial Plans are:
Single Purpose Financial Plans: Involves analysis and recommendations that address one or more of the specific planning concerns of most importance to the individual (taxation, RRSP, insurance, investments, retirement, estate, etc.).
Comprehensive Financial Plans: Encompass the individual's/family's overall financial situation and include, to the extent necessary; studying the current financial position and projecting the future cash flows. Planning for: income, risk management, education, tax, investment, retirement and estate.
Areas of financial Planning
- Financial management:
- net worth, cash flow, budgets, financial projections.
- Asset management:
- investment planning.
- Tax planning:
- minimize taxation.
- Risk management:
- (insurance) control financial exposure to personal risk.
- Retirement planning:
- accumulation of wealth to meet needs and goals in retirement years.
- Estate planning:
- maximization, preservation, and distribution of accumulated assets.
Financial Planning Process
- Establish the engagement:
- establish the scope of the engagement in writing.
- Gather client data:
- identify the client's goals, needs and priorities.
- Analysis of client financial position:
- evaluate to what extent the client's goals, needs and priorities can be met under the current circumstances.
- Develop and present the financial plan:
- identify and evaluate strategies and recommendations to achieve the client's stated goals, needs and priorities.
- Implement your financial plan:
- from approved recommendations agree on implementation action, responsibilities and time frames.
- Review the financial plan:
- (minimum annually) assess progress and confirm any revisions mutually considered necessary.