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The financial planning process consists of six steps that help one take a "big picture" look at where they are financially. Using the six steps, one can work out where they are now, what they may need in the future and what they must do to reach their goals.
The process involves gathering relevant financial information, setting life goals, examining current financial status and coming up with a strategy or plan for how one can meet ones goals given their current situation and future plans.
At a minimum, a financial planner needs to hold a Certified Financial Planner™ certificate. At Leonard Wealth Management, we consider this the minimum barrier of entry; similar to a CPA or law degree. The designations do not make a good professional, but are the starting point toward building the additional knowledge and experience necessary to provide quality financial planning advice.
Financial planning is the culmination of financially related subjects such as: retirement needs planning, cash-flow analysis, risk needs analysis, goal setting, insurance, basic portfolio analysis, investment management, education funding, basic tax and trust planning.
Fee only compensation and a fiduciary standard should also be minimum requirements for financial planners and financial planning firms.
Next: Fee-Only
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