Alexandra Armstrong: Hi! I am Alexandra Armstrong and I am a member of the Financial Planning Association. I am here to discuss the basics of financial planning. Right now I am going to talk about analyzing and evaluating your financial status.
Once you have answered the question what do I want you are ready for the next step which is answering the question what do I have? Answering this means assessing your resources to see financially where you are right now and where you are had it in the future.
Figuring this out requires that you know what your assets are today, what future income you can expect to have. Future earnings on your investments and the expected future benefits from sources such as your employer retirement plan or social security.
Financial planners will assess your current assets and debts, considering things like your investments your homes your qualified retirement plans, insurance policies, outstanding loans, and credit card balances. These other factors give them the good idea where you stand. All of these are things that you should consider when analyzing and evaluating your financial status.
Now let's talk about developing your financial plan.