Financial planning is the process of meeting life goals through the proper management of finances. Life goals can include buying a house, savings for a child’s education or planning for retirement. Life goals generally evolve over different life stages and hence a financial plan should be flexible enough to cater for these goals during the different life stages.
The financial planning process consists of six steps that can assist in understanding a client’s current situation or circumstances, financial goals and objectives. The process involves gathering relevant financial information, understanding goals and objectives, examining of the client’s current financial status and coming up with a strategy or plan to achieve the goals given the current situation and future plans. The strategy deployed may include investment planning to match financial goals and objectives with financial resources.
Investment planning is a core component of financial planning. By helping a client set out clear and measurable goals, the most suitable mixture of investments can be matched to each specific goal in the most efficient way. From the outset it is important to build a strong foundation and as circumstances change, the necessary adjustments can be made to keep the client on track. In addition to providing an organised approach, the financial planning process encourages exploration of client issues and facilitates creation of various solutions toward the accomplishment of goals. The process should be comprehensive and seeks to address a client’s holistic needs.
Moonstone Business School of Excellence (MBSE) has developed Fundamentals of Investment Planning I, the first part of a two-series course on investment planning approved for 3 FSCA CPD hours and provides a practical aid to illustrate the process of engaging clients in the financial planning process.
Financial planners, financial advisors, para-planners and business owners will benefit from enrolling for this course.
The course covers the following Units:
| ● | Financial Planning Principles and Practice |
| ● | Financial Planning Process |
| ● | Behavioural Finance |
| ● | Technical and Soft Skills |
Once you have completed this module you will be able to demonstrate knowledge of financial planning principles and apply practices, you will also gain an understanding of the concept of behavioural finance and its impact on investor decision making and the technical and soft skills required of a financial advisor.
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