What Is Comprehensive Financial Planning?

You may have heard the term “comprehensive financial planning” being thrown around, but what exactly does it mean?  Comprehensive Financial Planning, also referred to as Holistic Planning in some cases, can have many different meanings depending on who you talk to.  Let me explain to you how my firm defines it.

Comprehensive Financial Planning is essentially a process whereby a Financial Planner reviews a person’s entire financial picture (i.e. income, expenses, debt, investments, assets, wills, trusts, goals, etc.).  The goal is to review as much of this information as possible and to ask the right questions so that the best recommendations can be made.  This is similar to how a doctor is supposed to treat you.  If you have an ailment, it’s a good idea if the doctor asks you a series of questions such as: Where does it hurt?  How long have the symptoms been present?  Are you taking any medications?  Does this run in your family history?  Etc…  Ideally, a doctor may also run some diagnostic tests such as taking your blood pressure, weighing you, doing some blood work, etc.  After they have all of this info, they will analyze it and determine the best course of action to treat you.  If these steps were skipped and the doctor simply prescribed medication to you, that would be cause for alarm.  In contrast, this would be similar to a Financial Planner “selling you a product”, which would also be cause for alarm.

Another aspect of Comprehensive Financial Planning involves opportunity cost and choices.  For example, if you choose to use your money to pay off debt early, then you’ve lost the opportunity to invest that money.  Or if you choose to use your money to save extra towards your children’s college education, then you’ve lost the opportunity to use that money to fund your retirement.  Essentially you have choices with how to utilize your income and a good comprehensive analysis will provide you with the tools and analysis to help you make an informed decision.

If you’d like to learn more feel free to reach out to us at (314) 801-1324 or info@bestwealth.net. Here’s to making you a more “informed investor”.

Brad E.S. Tinnon, Owner

CERTIFIED FINANCIAL PLANNER™