Question

Use the six essential components of financial planning to provide sound financial advice to the clients
A young couple were married five years ago and have two children and are looking at buying a home. They have saved $30,000 each in their respective RRSPs, but don't have any other registered accounts and are currently not saving any funds while both are working.

Using the six step financial planning process, provide some sound financial advice for this couple to get them on the right path to becoming financially responsible. Also provide details of how you would incorporate NaviPlan into your solution and what your final presentation will include. elaborate in detail

Answer 1

FINANCIAL PLANNING PROCESS :

People want to handle their finances so that they get full satisfaction to achieve financial goal. To achieve these and other goal, people need to identify and set priorities. Financial and personal satisfaction are the results of an organised process that refer to as personal money management.

In this young couples looking form new home for financial planning needed. Improved personal relationship resulting form well planned and effectively communicated financil decision. A sense of freedom financial worries obtained by looking to the future, anticipate expenses and achieving your personal goals.

SIX STEP PROCESS ;

1 Determine current financial situation :

In this first step of process , young couple will determine current financial situation with regards to income , savings, living expenses and debt. Preparing a list of all the other expenses spent for various items gives you a foundation for financial planning activities.

2 Developing Financial Goals :

Young couple should periodically Analyze Financial value and goals. The purpose of this analysis is to differentiate your need from your wants. Specific Financial Goals are vital to Financial planning. Financial goals can range from spending all of current income to developing an extensive savings and investment program for couples future Financial security.

3 Identifying alternative course of action :

Developing alternative is crucial for making good decisions. Possible course of action usually fall into this category, continue the current situation, expand the current situation, change the current situation and take a new course of action. Considering all the possible alternative will help you make more effective and satisfying decision.

4 Evaluating alternative :

Young couples to possible course of action , taking into consideration in life situation, personal values and other conditions. Every decision close off alternative, opportunity cost is what give up by making choices. Thus , you will need to consider the lost opportunities that will result from young couples decision.

5 Create and implement Financial action plans ;

In this requires choosing ways to achieve goal . As achieve immediate or short terms goal , the goals next in priority will come into focus. To implement Financial action plans, a young couples need assistance from others. This hepls to Financial action in best results in personal money management.

6 Re-evaluate plan :

Financial planning is a dynamic process that does not end when take a particular action. Couples need to regularly assess Financial decision. Changing personal, social and economic factors may require more frequent assessment. in life events affect Financial needs , this financial planning process will provide a vehicle for adapting to those changes.

Young couple taking decision in Financial planning for Naviplan built on the most precious calculation engine in Financial market. In this simple goal based assesment to advanced cashflow planning analysis easily can done. Leveraging Financial planning in practice can have variety of positive benefits.