What are the pillars of financial planning?

The five pillars of financial planning— investments, income planning, insurance, tax planning, and estate planning — are a simple but comprehensive approach to financial planning.

What is financial planning answers?

Financial planning enables a business to determine how it will afford to achieve its objectives and strategic goals . A business typically sets a vision and objectives, and then immediately creates a financial plan to support those goals.

What are the four pillars financials?

Regardless of income or wealth, number of investments, or amount of credit card debt, everyone's financial state fits into a common, fundamental framework, that we call the Four Pillars of Personal Finance. Everyone has four basic components in their financial structure: assets, debts, income, and expenses .

What is the main goal of financial planning?

A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals .

What is financial planning in one word?

Financial planning is the process of taking a comprehensive look at your financial situation and building a specific financial plan to reach your goals . As a result, financial planning often delves into multiple areas of finance, including investing, taxes, savings, retirement, your estate, insurance and more.

What are the 4 pillars of the financial statement?

These elements, often referred to as the four pillars of modern financial management, include planning, budgeting, risk management, and the automation of financial and business processes .

What is 4 pillars concept?

The four pillars of OOPS are Inheritance, Polymorphism, Encapsulation and Abstraction . Object-oriented programming mainly focuses on objects which might be required to be manipulated. In OOPs, it may represent data as objects with attributes and functions.

What is the four pillars model?

The Four Pillar Model is an evidence-based approach commonly used to guide federal and provincial planning , and addresses substance use across four principles: Harm Reduction, Prevention Treatment, and Enforcement.

What are the 4 C's of financial management?

Character, capital, capacity, and collateral – purpose isn't tied entirely to any one of the four Cs of credit worthiness. If your business is lacking in one of the Cs, it doesn't mean it has a weak purpose, and vice versa. Instead, the four categories come together to constitute purpose.

What are the 6 aspects of financial planning?

As a financial advisor, you play a vital role in helping clients navigate their financial life through various aspects, such as cash flow management, investing, aligning personal values, risk management, tax planning, and retirement and estate planning .

What are the 7 pillars of financial health?

Macdonald argues that the solution to sustainable financial health is to develop seven key human skills - clarify, confidence, connection, curiosity, collaboration, communication and courage - and to exercise them in partnership with a trusted professional adviser.

The Pillars of Financial Planning (2024)

The Four Pillars for True Wealth Planning

Let's first define what we mean by True Wealth. True Wealth is the value of assets which can be converted to assure that your goal my be brought to fruition. True wealth is wealth that provides for your goals. Multiple goals may require greater wealth. Any wealth beyond that goal need can possibly be considered in excess of that need. This excess can be considered available for future goals, charitable causes, or gifts to heirs. You have the unalienable right to identify what your need is.

Merriam Webster's Definition of Wealth: Wealth is 1.) an abundance of valuable material or resources; 2.) abundant, profuse supply; 3.) all property that has a money value or exchangeable value or all material objects that have economic utility.

Strategic & Tactical Planning

Organizing your wealth by purpose allows for the targeting & accomplishment of your goals; i.e. retirement accounts, college savings accounts, emergency accounts as well as many others.

Strategic Planning establishes the target goal while tactical planning puts the plan in motion utilizing planning concepts, investment & insurance vehicles. Most people and families have multiple financial goals utilizing many planning concepts & vehicles.

GBJ Scott Financial has modeled the goal planning process to assist you in creating a robust financial life taking into consideration all aspects of need & desire.

Cash flow, taxes, investments, & preservation of assets are the primary areas of financial planning. Always under consideration are how the decisions in one area of planning may affect another area of planning. In other words, how decisions made about one goal may affect the outcome of a different goal.

Creating wealth, acquiring wealth, building a business, creating financial accounts of value, owning real assets, all of these build your structure for wealth planning. In a sense they are the framework or pillars for your financial building.

Every building needs a strong foundation, and every building needs a crown (ceiling, roof, dome) to protect the building and contents. The product of True Wealth is the crown, the roof. Supporting the crown are four pillars - four areas of financial planning. The four pillars are Cash Flow Planning; Tax Planning; Investment Positioning; and Estate Preservation. The four pillars provide supportive strength and hold the crown above. The four planning pillars work in unison - in accordance, harmonious & in concert with each other. Decisions about one pillar will affect the outcome of the others.

The foundation is made up of one’s personality qualities (personality traits) of virtue, motivation, determination, discipline, focus ability, & patience.

The Four Pillars for True Wealth Planning:

CASH FLOW PLANNING:

Type of income & taxation
Credit vs. Leverage
Systematic Saving System – the backbone of True Wealth.
Beyond the business checking account / MaxInterest Account / opportunity account - Core Cash Account (for Small Business Owners)

TAX PLANNING:

personal income tax efficiency
Investment tax planning.
a tax blueprint for greater tax savings. (for Small Business Owners)
tax operating system: implementation of tax code to capture maximum tax savings. (for Small business Owners)

INVESTMENT POSITIONING:

Risk / Reward analysis
Account & Portfolio Management / 401k / DC Plans / IRAs
Account Advisor (TPA) Management
Holistic Purposed Investing
Tax Advantaged Investing; Qualified Retirement Planning / Deferred income / Tax Free income

ESTATE PRESERVATION:

Risk planning / insurance planning (life & LTC)
pre-estate planning
Estate planning
Business Valuation (for Small Business Owners)

GBJ Scott Financial is here assisting you in your quest of True Wealth: Create. Grow. Preserve.

The Pillars of Financial Planning (2024)

The Four Pillars for True Wealth Planning

FAQs

What are the pillars of financial planning? ›

What are the 7 pillars of financial health? ›