Financial Plans
A financial plan is like a map. It tells you where you are now (like a kind of financial health check), helps you decide where you want to go in the future and then provides strategies for getting you there in the most efficient way.
Every financial plan is different because every person is different. However, most contain sections about some of the basic requirements for achieving financial success.
Making financial plans was a process that people used to work through by themselves. In today's complex world of finance and investment, a helping hand in the form of some professional advice can help you to avoid the minefields along the way.
There are four or five main types of plans. These can be prepared individally or as a comprehensive document. The areas covered are:
Personal Cash Management Plan
A personal financial plan that examines your income and expenditure, your current debt level and your tax position. A net worth statement is provided and your exposure to risk of loss is assessed. Recommendations for optimising your position are given. Budgeting is an optional extra.
Personal Savings and Retirement Plan
A personal financial plan that examines your income and expenditure, your assets and liabilities, your exposure to the risk of loss and your financial preparedness for retirement.
Personal Investment Plan
A personal financial plan that evaluates your current investments and provides you with a recommended portfolio designed in accordance with Modern Portfolio Theory and suited to your risk-return requirements.
Personal Comprehensive Financial Plan
A fully integrated personal financial plan which considers all aspects of your financial position comprising Cash Management, Risk Management, Savings and Retirement Planning and Investment.