Creating a financial plan today can provide major benefits for you tomorrow and also for the remainder of your life. The common misconception is that financial planning is only for the wealthy, or that you must already have a good sized nest egg before meeting with a financial planner.

Regardless of your current income level, age, investor experience or personal situation, planning for your financial future is, quite simply, the smart thing to do. Working with a financial planner and creating a financial plan is all about how to get from point A to point E, while keeping an eye on B, figuring out what to do with C and how to stretch it to D, so when you finally get to E you can put your feet up. Remember, it's this big-picture approach that sets financial planners apart from all other financial advisors who are trained to focus on one aspect of your finances - normally just the investments.

Depending on what your financial position is today, you may have several short-term and long-term goals that you wish to achieve, but you are unsure as to how to make them a reality. "Hoping" for your luck to change or "waiting" for your big break will not work. A goal without a plan is simply a dream.

Once you have decided that you are ready to take the next step and meet with a financial planner, you have started on the road to the "promised land" - financial security.

The financial planning process consists of six steps that help you to take a "big picture" look at where you are financially. By using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

1. Establish the client-planner relationship.

The financial planner will:

• Explain issues and concepts related to the overall financial planning process that are appropriate.

• Explain the services that will be provided, the planning process and the documentation required.

• Clarify responsibilities of the client.

• Clarify the responsibilities of the planner, which will include a discussion about how they will be compensated.

• Discuss the client/planner engagement letter and sign.

2. Gather personal and financial data, including goals.

The financial planner will:

• Obtain information about your financial resources and obligations.

l Gather all the necessary documents before giving you the advice you need.

l Define your personal and financial goals, needs and priorities.

l Investigate your values, preferences, financial outlook and desired results as they relate to your financial goals, needs and priorities.

3. Analyse and evaluate your financial status.

The financial planner will:

l Analyse your information to assess your current situation (cash flow, net worth, retirement funds, etc.).

l Identify any shortfalls or surplus in the following:

- Capital need requirements.

- Risk management needs and coverage.

- Investments.

- Taxation.

- Retirement planning.

- Employee benefits.

- Estate planning.

- Special needs (ie adult dependent needs, education needs, etc.).

4. Develop and present financial planning recommendations and/or alternatives.

The financial planner will:

l Develop and prepare a financial plan tailored to meet your goals and objectives, values and risk tolerance while providing projections and recommendations.

l Present the plan to you and establish an appropriate review cycle.

l Work together to ensure that the plan meets your goals and objectives.

5. Implement the financial planning recommendations.

The financial planner will:

l Assist you in implementing the recommendations discussed. This may involve coordinating contacts with other professionals such as tax consultants for tax planning, insurance agents for any shortfalls on insurance and lawyers for any estate needs.

6. Monitor the financial planning recommendations.

The financial planner will:

l Evaluate your plan to ensure that it is helping you progress towards your goals.

l Contact you to review the progress of the plan periodically and make adjustments to the recommendations required to help you achieve your goals.

l Discuss any changes in your personal circumstances and how they might affect your goals.

l Review and evaluate the impact of any changing tax laws, estate laws or economic circumstances on your goals.

l Review your life circumstances as they change through life events such as birth, illness, marriage, retirement etc. and make adjustments to the recommendations if needed.

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. By viewing each financial decision as part of a whole, you can consider the short and long-term effects on your life goals. Working with a financial planner will help you bridge the gap from your current financial situation to your life time of financial freedom.

Carla Seely is a senior wealth manager at AFL Investments. She can be reached at 294-5712 or cseely@argusfinancial.bm