Financial Planning is a way of arranging your finances using a strategic approach. In the old days, people tended to organise their affairs through the use of financial products, which were commonly purchased through banks and insurance company sale forces. Over time there has been a clear shift away from the product-led approach to the strategic-led approach, resulting in the Financial Planning process.
Put simply, Financial Planning is a way of linking your future goals and long-term objectives to short-term decisions. How much should you save? Should you pay off debt? What sort of investment portfolio should you have and what risk level should you take? These types of questions are all answered by viewing them in the context of your goals and lifestyle wishes.
In our view, good financial planning is achieved by a holistic approach that includes retirement planning, protection planning, estate planning and investment planning, along with underlying tax planning and the interaction between these areas to achieve the best outcomes for you.
The process of cash flow management involves understanding where current and future money comes from, where it goes, how asset values change over time, and what decisions are needed to meet lifestyle goals. It is a process which supports financial planning and is one which should be continually reviewed and repeated.
The cash flow forecasting software outlined in our approach is an important tool that enables us to successfully applying the Financial Planning approach.