When it comes to personal finance, no two people share the exact same circumstances, goals, values, or timeline. The actions that make perfect sense for one person may be completely inappropriate for someone else. That’s why there is no such thing as one-size-fits-all financial advice.
But while every client’s plan is unique, the process for building a financial plan remains consistent. A structured process can help ensure recommendations are personalized, thoughtful, and aligned with what truly matters to the client.
Below is the financial planning framework I follow—designed to help individuals make more confident, informed decisions about their financial future.
1. Understand the Client’s Personal and Financial Circumstances
Every plan begins with gaining a deep understanding of who the client is and what their financial life looks like today. This includes:
- Gathering key qualitative and quantitative information
Income, assets, liabilities, insurance coverage, benefits, family dynamics, financial values, and more. - Analyzing the information
Looking at how each element interacts and affects the client’s overall situation. - Addressing gaps or missing data
Helping ensure decisions are made with complete and accurate information.
2. Identify and Select Financial Goals
Clear goals can serve as the foundation for an effective financial plan. This step includes:
- Identifying potential short-term and long-term goals
Retirement, debt elimination, education funding, risk management, business goals, wealth transfer, etc. - Prioritizing goals
Determining what is most urgent, most impactful, and most aligned with the client’s values.
3. Analyze the Current and Alternative Courses of Action
Here we determine whether the client’s current financial behavior supports their goals—or if adjustments are needed. This step includes:
- Reviewing the current plan or course of action
Are they on track? Are there inefficiencies or missed opportunities? - Evaluating alternative strategies
Exploring options that may improve outcomes, help reduce risk, or create more flexibility.
4. Develop the Financial Planning Recommendations
Once the strategy is clear, tailored recommendations are developed. For each recommendation, we consider:
- Assumptions and estimates used
Such as inflation rates, expected returns, expenses, tax projections, and life expectancy. - The reasoning behind the recommendation
Including how it helps the client pursue their goals and how it integrates with their broader financial picture. - Timing and priority
What needs to happen now, soon, or later. - Dependencies
Whether the recommendation stands alone or must be paired with another action to be effective.
5. Present the Financial Planning Recommendations
Recommendations are then shared with the client in a clear, transparent, and understandable way. This step includes:
- Presenting the specific recommendations
Explaining the action steps and expected impact. - Reviewing the key information used to help develop them
Helping ensuring the client understands the assumptions, reasoning, and alternatives considered.
6. Implement the Financial Planning Recommendations
A plan only works when it’s executed. Implementation includes:
- Clarifying roles and responsibilities
Who handles what—and when. - Evaluating actions, strategies, products, and services
Such as investment selections, insurance coverage changes, account structures, or estate planning needs. - Recommending specific strategies that fit the client’s situation
- Executing and coordinating the plan
Opening accounts, reallocating investments, updating beneficiaries, and more.
7. Monitor Progress and Update the Plan
Financial planning is an ongoing process, not a one-time event. Lives change, goals shift, and the plan should adapt accordingly. This step includes:
- Setting monitoring expectations
Outlining how often progress will be reviewed. - Tracking the client’s progress toward their goals
- Refreshing data over time
Updated income, expenses, investment performance, and life events. - Adjusting goals and recommendations as needed
Final Thoughts
Every financial plan is different, because every person is different. But a solid planning process is essential—it helps ensure the advice is personalized, comprehensive, and aligned with the client’s unique goals and circumstances.
If you're considering building or updating your financial plan, having a clear and structured process is the best way to stay more confident and in control of your financial future.
Together, we can work to keep you on-track toward your financial goals.
Request a consultation to learn more.
Read more articles by Ryan Johnson