The financial planning process is an ongoing process involving various steps. The end result is a financial plan which can, and will, change throughout time due to varying circumstances such as medical emergencies, unemployment, goal changes, and other life events. A good sound financial plan can be modified to suit changing needs.

First, financial planners will work with you to determine where you currently are. This includes not only net worth and current income, but lifestyle, risk tolerance, responsibilities, and financial resources. From this information a financial profile will be developed.

As part of this profile, it would be determined what resources you need for maintaining your current lifestyle, a “needs assessment” if you will. Debt obligations, housing costs, food costs, medical expenses, and any other recurring expenses are taken into consideration at this stage. The combination of these two areas results in a cash flow analysis — inflows (income) and outflows (expenses) in very simplified terms. A net worth analysis is another useful tool your financial planner would develop during this assessment phase.

After assessing where you currently are and what you need, financial planners will work with you in determining your goals and objectives. It could be financial security, travel, a vacation home, estate planning, retirement planning, college funding, entertainment. Before meeting with your financial planner, time needs to be set aside to determine what you really want to achieve.

Have available both strategic and tactical goals. Strategic goals are broad based such as “I want to go on a worldwide cruise,” while tactical goals are more narrow based. An example would be “I want to go on a worldwide cruise on my 60th birthday.” Only you can determine what your goals and objectives are. Another way of viewing goals and objectives are that they are your hopes and dreams for the future.

When it is determined where you are, what you need, and what your goals are, it is time for the financial plan to be developed. Your financial planner will develop an individualized plan that is flexible, meaningful, and solid. This is the stage where the emergency fund, retirement planning, investments, tax planning, debt management, estate planning, and insurance all come into play. Your financial plan will be a detailed description of how you will go from step A (determining what you have) to step C (goals and objectives).

Quite often the financial planning process involves a group of experts known as “the financial planning team.” Each area of expertise involves an individual, or firm, specializing in that field. Specialists in the financial planning field can earn the designation of Certified Financial Planner (CFP). They are specially trained and educated in the entire financial planning process and provide the most rounded out knowledge regarding this area.

As additional examples, tax planning may involve a CPA; estate planning either a CPA or attorney; insurance needs would be handled by an insurance agent; debt management by a debt consolidation expert; and investments would be handled by an investment counselor.

An investment counselor has the knowledge and expertise to help guide one in choosing from the various investment options available. They know the advantages and disadvantages of each and can provide helpful insight in deciding which one is most beneficial for you and your goals.

They also will take into consideration your risk tolerance, your financial plan, your available resources, and find ways for you to reap the benefits of your money working for you.

The purpose of the investment counselor is to help you achieve your financial goals. Many people take their financial plan to the investment counselor, using it as a foundation. Others don’t. They know they want to invest and have their goals in mind. In either case, the investment counselor provides expert individualized guidance to help you realize your dreams and hopes.

Since risk tolerance is an important ingredient of investing, let’s use a hypothetical example. Say you avoid risk at all costs. A risk to you would be changing toothpastes, for instance. An investment counselor would probably choose either bonds or certificates of deposit as your best bet. If, on the other hand, you chase after risk (like a bungee jumper with a previous neck injury), then stocks or commodity trading may be suggested to you. Every investment has a risk factor and investment counselors take this into consideration.

As can be seen, planning for one’s future can be a very complex task which can appear overwhelming and provide uncertainty unless you receive the proper guidance.

Receive the proper guidance by finding a qualified financial planner to help you assess where you currently are, what you need, and develop a plan for you to achieve your goals and objectives.

Once you have this plan in place (or not, depending on the individual circumstance), know what you have available, and have your goals in mind — find an investment counselor to assist you in making your goals a reality.

And if you are diligent enough and do your research, you may be blessed in finding a financial planner who also provides investment counseling. It all depends on what you are looking for.