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Friday, 22 January 2016

A Look Into Holistic Financial Planning

By Melissa Thompson


In most cases, human beings have goals that they would like to achieve in their lifetimes. Some even set timelines for these goals in which they strive to meet at all cost. Proper management of resources is one of the key aspect to use in order to achieve the set objectives. Some of them may include building a home, saving for a certain investment, planning for retirement among others. The process of undertaking holistic financial planning is discussed below.

Meeting these objectives have proved to be very difficult when undertaken at a personal level. The concerned are therefore forced to seek the services of advisors who will guide them through with all the requirements. They are therefore expected to establish and ensure that there exists a good client advisor relationship. This ensures that there exists a professional relationship between the two parties that observes all expected values.

A lot of data is required to undertake the planning. The clients must be willing to avail any required information to their advisers no matter how sensitive and private they may be. This includes all the financial records, written objects and the speculated period in which the process is expected to take. This promotes the existence of a mutual relationship as well as transparency in the roles of both parties.

All the financial recommendations will require to be implemented. An agreement on how this should be carried out must be arrived at. At times, it may be necessary to involve personal accountants and attorney when undertaking this. This is to ensure that there exist no loopholes that may end up hindering the expected result in the future.

Planning is a process in itself. It therefore takes time before the goals can be met. A lot of monitoring is therefore required to ensure that all goes as planned. It is the work of the advisors to monitor the progress of all the investment recommendations and report to their clients. They are also expected to give some reviews on the same and adjust whatever may require some adjustments for better results.

There is a need to analyze and evaluate the financial status of the clients at a prior stage by the advisors. This gives them an opportunity to access the current situation of their client financially and determine whether it is possible to carry out the planning. Analysis may be carried out on the assets, liabilities as well as the cash flow just to mention but a few.

There is also the need of presenting the investment recommendation arrived at as well as any existing alternatives. These are based on the information provided and the likely hood of meeting the set objectives. Viable alternatives may come up after undertaking a review of the initial plans which may play a vital role in the realization of good results.

All the above discussed factors are aimed at ensuring that all the set objectives arrived at in the best way possible. This may, however, differ depending on the approach used by the concerned individual. This type of financial planning have proved to be of great significance, explaining why many have taken it up.




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