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What’s the first step in the financial planning process? Thumbnail

What’s the first step in the financial planning process?

If you’ve ever wondered, “What is the first step in the financial planning process?” then this guide is for you. 

First, you might be surprised to learn that financial planning can be exciting, especially when you hire an experienced wealth management company in NYC with a proven track record of helping others. 

There are seven steps in the financial planning process. Each one builds on the previous step, creating a foundation for your financial success. 

Here is what you can expect when you partner with Power Forward Group.

Step 1: Get To Know Each Other 

The very first step in the financial planning process is for you, the client, and the wealth managers to get to know each other. This is a crucial moment because it impacts how effective or on-target our suggestions are. 

During this phase, we will get to know each other on a personal level and then delve into the opportunity of working together. We’ll learn about your history with wealth management, why you are interested in working with an advisory team, and if we’re the right fit for you.. 

Leveraging technology powered by advisors, we’ll send you a link to get a high level overview of your financial life. This will allow us to discuss what you are currently doing and how well that is working as well as identify any gaps that may exist.

Not only that, but we will discuss the very important “why” question. Why are you doing it this way? What are the factors in your life that are driving these decisions? 

That will help us understand how you view your wealth and the values that are most important to you regarding your money. 

This is a time for us to find common ground with each other. You’ll be able to ask us any questions you have as well. Find out how we operate and hear some of our success stories. 

Step 2: Establish Financial Goals 

Next, the team will outline and discuss your financial goals. This includes (but isn’t limited to) things like wealth accumulation, debt elimination, or saving up for large events like weddings or college. 

Part of this process is establishing a time frame for each goal or milestone and prioritizing them by their importance. 

We will also set realistic expectations based on how likely these goals are to be met based on your current income, savings, investments, and debt situation.

Step 3: Evaluate Efficacy of Current Practices 

After we understand your current needs and goals, we will look at what you are currently doing and how likely that is to help you achieve your goals. 

If your current habits and situations are propelling you closer to your goals, then we will look at how we can support and encourage them. If not, then we will look at changes we can make. 

The financial planning process must always look at the current practices and decide how to incorporate them into the new plans. 

Step 4: Develop an Action Plan

This is the middle of the process, the point where the team works behind the scenes to create a personalized action plan just for you. 

The action plan will include all of the ways we will help you reach your financial goals. This will include ideas that enhance current actions/habits and ones that are completely new. 

Your action plan will also incorporate alternative actions we will take if the current ones don’t work out. Sometimes, this happens when lifestyle changes make it impossible to maintain the status quo. 

Life is impossible to predict, but an experienced wealth manager will be able to help you prepare for it. 

Step 5: Present Suggestions 

After our team is confident in the suggestions and goals we have for you, we will present them to you and answer all of your questions. 

At this point, we will explain the process behind the way we prioritize your goals and the reasons behind our supplemental actions. 

Come with as many questions as you can. This way, you can make an educated decision about which actions to take first. 

Step 6: Implement

After you agree on the actions to take, we will begin to implement them. You don’t have to worry about anything. We take care of it all. 

Power Forward Group will communicate clearly with you as we strive to meet all agreed-upon deadlines and help you achieve those important financial milestones. 

Step 7: Evaluate and Monitor

The final step basically never ends. We will continue to monitor and evaluate the strategies and action steps. After one goal is met, we will move to the next one. 

If a goal isn’t being reached, we will dive into it to figure out why. Maybe a lifestyle change is affecting it, or maybe changes need to be made. Either way, we will look at how we can create alternative choices and pivot to something that will work. 

Financial Planning For Lawyers: Contact Us Today 

Financial planning can be an exciting and stress-free experience. When you are ready to work with a team that you can trust, contact Power Forward Group. Now is the time to reach your fiscal goals - personal or professional. 

Take the first step in the financial planning process today and contact us at 646-647-2150.