How the Financial Planning Process Can Protect Your Future
How the financial planning process can help you control your future without adversely affecting your current lifestyle.
We often refer to financial planning as a product. In reality, though, it is a process in which your finances are managed in the short term to produce long-term gains and financial security. A great financial planner can not only help you achieve your long-term retirement goals, but also make sure that you are prosperous enough to enjoy your life on the way to retirement.
To this end, the financial planning process usually involves three phases: risk management, wealth creation and retirement planning.
Risk Management
Risk management involves insuring yourself and your investments to mitigate the risk of losing them if you suffer a permanent injury, severe traumatic illness, premature death or any other circumstance that may prevent your financial plan from reaching fruition. Your financial planner will discuss various covers with you and work with you to ensure that you, your family and your assets are protected in the case of any unforeseen illness or injury.