Monitoring the Financial Plan & Making Adjustments

Alexandra Armstrong: Hi! I 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 monitoring your financial plan and making necessary adjustments.

The final step in the financial planning process is really one of the most important. Once the plan is implemented the results will need to be monitored on an ongoing basis to make sure it is achieving the objectives you have established. This should be done at least once a year, perhaps in January or February, after you have received all your year end statements. To make sure you are staying on track begin by asking yourself or your planner how you are doing in relation to your goals. Ask too what has changed since last time to see if any new developments should cause you to reevaluate the goals you set earlier. Just as when your plan was being formulated, it will be helpful to take a snapshot of your financial situation with the use of balance sheet and personal cash flow statement. This is also a good time to examine your investments to see how they did last year and if they still reflect your future goals. Remember, the most important factor in the financial planning process is monitoring the results and making necessary adjustments.

A qualified financial planner is the best person to address any questions or issues you might have with your financial plan. To begin your search ask for names from friends or colleagues who may have used a financial planner, or you can visit planner search at www.

plannersearch.

org. This is just an overview and I hope this has given each of you some insight into the process of financial planning. If I have accomplished what I set out to do, you will walk away today thinking of financial planning not as something overwhelming but as a truly rewarding and important process that it can be.