Financial planning is a service which is often provided by wealth managers free-of-charge as a prelude to an asset management agreement.
The first step in financial planning and subsequent wealth management is the creation of a financial plan.
Broad knowledge of finance is necessary for optimal financial planning. A financial planner must also understand which services require the skills of a third-party financial specialist.
The conventional definition of financial planning encompasses a number of activities and steps:
- The creation of a profile (customer profile or mandate profile).
- Analysing the profile.
- Working through investment proposals.
- Documenting the profile.
- Implementing investment proposals.
- Reviewing the implemented proposals.