Broker Check
The 7-Step Financial Planning Process

The 7-Step Financial Planning Process

July 31, 2023

This is the first in a multi-part post discussing the financial planning process. Each step will be discussed in more detail in a subsequent post.

This graphic is an overview of the 7-step financial planning process.

Source: CFP Board Roadmap To The Code Of Ethics & Standards Of Conduct

Step 1 – The client’s personal and financial circumstance are analyzed, and any incomplete information should be addressed.

Step 2 – Client goals should be identified and prioritized.

Step 3 – Analyze the current course of action and determine potential alternatives.

Step 4 – Develop financial planning recommendations designed to maximize the potential for meeting the client’s goals.

Step 5 – Present the financial planning recommendations and discuss whether to modify the goals or recommendations.

Step 6 – Implement the financial planning recommendations and who should implement which recommendations.

Step 7 – Monitor the progress with respect to meeting the client’s goals.

After changes in life, i.e. the birth of a child or the death of a loved one, or after some time has passed, i.e. a year, the client’s circumstances should be again analyzed and the process repeated to address the changes.