Question

Key activities of financial planning

Answer 1

The main focus of finacial planning is to know what should be done to prevent downfalls.There are six activities that will help financial planning .These include the following:

i)Establishing and defining the client-planner relationship:It is where the advisor introduce himself or herself a client or prospective client and explains the financial plannig process.The adviser may ask open ended questions to uncover necessary information to start the plan.Thse may include range of topics from financial goals to feeling about the market risk.

ii)Gathering client data:The relevant data gather is required to make recommendations for the appropriate strategies and financial products to reach goals.

iii)Analyzing and evalauting client's financial status:This will help in devising alternative solutions to achieve the goal.

iv)Develop the plan:Develop the paln as per goal of client.

v)Implement the plan:Implementing the plans means you are putting your plan to work.

vi)Monitor the plan:Once the plan is created,it is essentially a piece of paper.They change often.This is why the plans need to be monitored and tweaked from time to time.