A financial plan is a document containing a person’s current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan begins with a thorough evaluation of the person’s current financial state and future expectations and may be created independently or with the help of a certified financial planner.
- A financial plan documents an individual’s long-term financial goals and creates a strategy for achieving them.
- The plan should be comprehensive but also highly individualized, to reflect the individual’s personal and family situations, risk tolerance, and future expectations.
- The plan starts with a calculation of the person’s current net worth and cash flow and ends with a strategy.