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The Definition and Process of a Financial Planning Solution

Decision-making is not solely dependent on data; getting the information to the right person makes a difference. Financial planning solutions are diverse and an excellent method of automating functions. These functions are extensions and aligning objectives with the business to eliminate slow, inconvenient, and error-prone manual processes. For any plan to work, it requires alignment with finances. Here are the steps to a successful financial planning solution.

Financial planning solutions

A financial advisor must be transparent to the client, explain risks, and clearly return a financial plan to the client. This is achievable by providing a client with a customized projection of the possible result against the objective. These projections are based on proposed investment plans. Further, the client and advisor should implement several “what-if” situations to improve the financial plan. Here are some examples.

  • What if my investment changes?
  • What if I change my contribution or withdrawal amount?
  • How can I manage my financial plan to meet the objectives?

Match client goals to solutions

Financial planning solution should align with risks and returns. An advisor should explain to clients the capacity for loss in an investment in a way they can understand.

Provide advice on suitability

A good financial plan is customized, and one shoe fits all. An advisor is entitled to help the client assess the suitability of an investment with illustrations of potential losses and solutions. A client’s financial objectives should meet the investment portfolio with a profile of risks within the option.

Steps to financial planning solution

Financial Objectives should align with planning

The goals before a company should guide the financial plan. It should be a future roadmap with the following features.

  • Quantifiable and achievable targets
  • Clear with a defined timeframe
  • Separate needs and wants

Document these features and discuss them with a financial manager to measure progress. A financial plan should be reviewed often to capture changes and ensure it’s relevant to the business or an individual. A business can employ supply planning software to help get appropriate data before planning.

Gather information

The clarity in the information presented ensures financial planning success. The information you submit should be quality and straightforward to help you make better decisions. Once the financial advisor receives actionable information, they carry out a fact-finding mission to get the plan’s objective concerning finances. A clear financial plan should include,

  • Revenue and expenditure
  • Assets and liabilities
  • The risk involved, tolerance, and capacity

Analysis of personal ad financial information

Your personal information produces a report that aligns with your financial profile. What follows is a ratio to help you comprehend the economic circumstances, strong and weak areas.

  • Solvency Ratio
  • Savings Ratio
  • Liquidity Ratio
  • Debt Service Ratio

A risk tolerance questionnaire about investment assets assesses your ability to take and manage risks. The same analysis is also done to determine asset allocation for investment or pension objectives.

Development of the financial plan

The financial plan development is based on the advisor’s information. Add each goal, and recommend including,

  • A net worth statement on a balance sheet
  • The total tax calculation for a year
  • Annual cash flow report indicating surplus or deficit

Once the report is presented and explained, the client and advisor can sign.


After reviewing the report, the advisor outlines the next course of action, which can involve;

  • A new strategy for pension or investment
  • Changing debtor
  • Additional insurance policy for life or severe illness
  • Adjustments in income and expenditure

The advisor can continue to serve you as a coach. They can coordinate the process between the client and stakeholders, including financial product providers.


A financial planning solution follows a defined, documented process to achieve a successful outcome. However, making financial decisions and moves without proper planning and professional help can land you in problems. Therefore, you should take the time to seek help from a financial advisor before making significant financial decisions.

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