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Create Your Own Plan
Many people are skilled and talented enough to adopt a DIY approach to many aspects of their lives, whether it be home improvements, car maintenance or shoe repairing.
However some services such as hairdressing, dentistry and surgery are often a little trickier even for the highly talented. Nevertheless there are always those with unerring confidence who will simply see the trickier ones more of a challenge than an obstacle.
For those who would include financial planning among their challenges we offer the following 12 steps to creating your own financial plan.
How to create
your own personal financial plan
in
twelve steps
- Decide on what you want to achieve for the short, medium and long terms. Include your family and business, as appropriate.
- Calculate the financial cost of these goals, both now and in the future.
- Include in your calculations your current :
Assets & Liabilities,
Income & Expenditure,
Cash flow projections.
- To help choose realistic projections study:
the time value of money,
compound interest,
the effects of inflation,
stochastic modelling techniques
- As life offers no guarantees learn about ‘what if’ modelling
- To confirm you are as good as the professionals gain a professional qualification in financial planning - preferably one that is recognised internationally. We recommend the Certified Financial Planner licence.
- To ensure your Plan benefits from fiscal and regulatory developments subscribe to any tax journals that cover at least Income tax, Inheritance Tax, Capital Gains Tax, VAT.
- To ensure you invest your money in only the best the market can offer subscribe to reliable and comprehensive investment research facilities. We recommend Synaptic, The Exchange, O&M, Aequos, Moneyfacts.
- Familiarise yourself with risk, its various guises, and how to address them.
- Learn about Asset Classes, Asset Allocation, Portfolio Construction and rebalancing.
- Put it all together using dedicated financial planning software. We recommend the Prestwood system for professional advisers.
- Finally, set
up a review schedule to ensure you
remain on track.
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There, easy!
Alternatively why not let Stafford & Co. help you to create your own personal financial plan!
All you have to do is take The First Step
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