A lot of people are surprisingly still not aware of financial planning despite the various financial pressures modern life exerts on the average individual. Financial planning is the systematic process through which you can learn to spend money wisely without affecting your lifestyle. It gives you flexibility with your money and the means to save for the future without compromising on your current way of life.

Financial planning can be a cumbersome process – there are a lot of variables that are involved and the way these interact with each other is complex and daunting. This is why you should consider enlisting the services of a financial planner who can give you the best plan for your financial ability and lifestyle requirements.

Financial Planning – 6 Step Approach

There are basic tenets as far as financial planning is concerned which can give you a clear picture of what you can get done with it. Here, we look at the six steps of sound financial planning.

1. Establishing planner-client relationship
2. Establishing client baseline when it comes to goals and capital
3. Evaluating client’s current financial status
4. Developing action plan for client considering unique factors
5. Implement customized plan
6. Monitor, review and iterate as necessary

Please note that this is a simple outline of the process, and the actual process involves a lot of painstaking research and effective use of numbers.

How Important Is Financial Planning?

To have a comfortable lifestyle in modern times places a lot of duress on most people but financial planning can make it just a bit easier to accomplish. Financial planning when done right can make sure that your family and you have the right amount of money invested and saved up so none of you need worry about your financial future.

There are several important services financial planning offers, let’s take a look at a few.

College Funds Savings Plan

Education is one of the most critical parts of a child’s life and you need to do all you can to secure it. Considering the fact that college education has become more expensive than ever, you need to make sure that you save up enough. Financial planning can give you the best course of action – saving money for your children’s education while maintaining your lifestyle.

Tax Savings

There are a lot of investment options available and you need to know which can offer you the best deal. 401K and Roth IRA are important tools for securing your savings and a competent financial planner can let you know what you should choose and how you go about the entire process.

Choosing The Right Annuity

Annuities are basically investments that are paid out to a person over a period of time. You can configure this however you want, meaning, monthly, quarterly, or even lump sum amounts. The right financial planner can help you find an annuity scheme that is right for you.

Auto And Home Coverage

While a lot of people just get the most basic home or auto insurance, financial planners can advise you on different policies that might offer you more coverage for proportionately less of your hard-earned money.

Investing In Life Insurance

A life insurance rather than just being a payout for when something happens to you is a form of investment that you can use to as rainy-day savings. The right insurance can help you plan your wealth accumulation at the same time offering you liquidity when you need it.

Retirement And Estate Planning

Retirement is another critical phase of your life because here you are relying on earlier savings that you have put together. Financial planners help you set aside the right amount of savings, so you won’t be left stranded post-retirement. Estate planning is when you plan ahead for how your estate is divided among closest family.

Certified Financial Planners

When you are looking to hire a financial planner in California, you need to make sure that they aren’t people who are just pushing their agenda through you – meaning, offering you policies that aren’t in your best interests. What you need to look for is certified financial planners who are also fiduciaries. Fiduciary standard compliant financial planners have your best interests in their focus and are required to offer accurate advice. As far as financial planners go, this is the best type of financial planner that you should look to hire.


This article should have given you some adequate information about how you can choose your financial planner. Remember to steer clear of insurance agents and brokers as they won’t focus on what you want rather they will just further their own cause. A trusted financial planning firm can offer you the right services to choose the best path for you and your loved ones.