Media Room | Financial News | Investors Group

Six steps to financial planning

A comprehensive financial plan should include planning in all of these areas: investment, cash flow, education, estate, insurance, retirement, and tax. To be successful, your plan must be tailored to you. It makes sense to seek the advice of a financial advisor who will take you through this six-step planning process:

  1. Set goals –Define and prioritize your goals and concerns.
  2. Gather data – Gather all pertinent financial information to understand your current financial situation.
  3. Financial analysis – Analyze the data to determine whether you are on track to achieving your financial life goals, and to identify alternative strategies to achieve those goals. This includes a review of how to reduce your taxes; whether you’ll have enough income to cover your retirement expenses; and strategies for protecting your family and income should you become disabled or die unexpectedly.
  4. Formulate a plan and examine recommendations – Develop a written financial plan that contains recommendations and an action plan for achieving your financial goals and improving your overall financial life.
  5. Implement the plan – Take action to implement the solutions that have been agreed upon.
  6. Monitor and review the plan – Financial planning is not a one-time event. You should review your plan regularly: at least annually and as major life events occur.

There you have it. It takes just six steps to start building your personal financial plan. Be sure you get the advice you need by talking to a qualified financial advisor.

June 26, 2015

This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.