If you asked ten people to define financial planning, you are likely to get ten different answers.  For the sake of mutual understanding, AIP defines financial planning as the practice of understanding what a client wants to achieve during their lifetime and helping them make informed decisions to get there.  The CFP Board adds to this definition, saying it is a “collaborative process with the client that contains all relevant aspects of the client’s personal and financial circumstances, not just how much money is under management.”

Because it is more of a process and a relationship than anything else, financial planning is easier to get started than most believe, and there are several ways that we can make it scalable. When you get right down to it, financial planning is simply determining goals, analyzing assets, liabilities, and opportunities, and designing a plan for reaching those goals.