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What is Financial Planning?

Comprehensive financial planning is the process of formulating, implementing, and monitoring financial decisions in order for an individual or family to optimally achieve their financial goals. Facilitating this process is the primary mission of Grossman Financial Management.

Comprehensive financial planning involves the management of personal financial resources, opportunities and risks through a careful and ongoing planning process. The financial planning process helps clients to effectively manage their finances in many ways:
*It formulates a realistic plan of action.
*It determines what resources are needed and available.
*It identifies risks and contingencies. 
*It enhances the client's control of their financial destiny.
*It facilitates better strategic decisions. 
*It provides an ongoing process of planning, feedback, evaluation, and course correction. 
*It emphasizes measurable goals that provide guideposts for financial action.  
*It makes it more likely that goals will be achieved.

The personal financial planning process guides clients to realistic and attainable goals. In so doing, it plays a critical role in avoiding behavior that may be counter to a client's real needs.

The planning process generally follows these steps:
*Development of the client goals, such as for retirement and investments.
*Collection of the relevant information, financial and otherwise.
*Analysis of the data and the goals to determine feasible courses of action.
*Selection of the most appropriate strategies.
*Specifying detailed implementation targets and action items.
*Monitoring and measuring the implementation. 
*Modifying actions and targets as needed over time.

It is critical to recognize that not all publicly available financial planning software programs calculate financial forecasts properly.  In fact according to a 2016 academic study of 36 major online retirement programs from the University of Texas, "publicly-available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness...the advice provided from a majority of these tools is extremely misleading to households" ("The Efficacy of Publicly-Available Retirement Planning Tools", February 2016; see https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2732927 )

In the final analysis, financial success is in the eyes of the beholder. At Grossman Financial Management, we believe that personal financial planning, properly done, advances significantly the probability that clients will be financially successful in their own eyes by realistically establishing financial goals and then prudently managing financial affairs to those ends.

 

 

 


 

Grossman Financial Management
560 First Street, Suite B-203   
Benicia,  CA 94510
Tel: (707)
745-8756   Fax: (707) 745-8723
E-mail: 
info@grossmanfinancial.com


DISCLAIMER: The Company only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.  Past performance may not be indicative of future results.  Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by adviser), or product made reference to directly or indirectly on this Website, or indirectly via link to any unaffiliated third-party Website, will be profitable or equal to corresponding indicated performance levels.  Different types of investment involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio.  No client or prospective client should assume that any information presented and/or made available on this Website serves as the receipt of, or a substitute for, personalized individual advice from the adviser or any other investment professional.  Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have [the] effect of decreasing historical performance results.  This web-site is for informational purposes only, and does not constitute a complete description of our investment services or performance. This web-site is in no way a solicitation or offer to sell securities or investment advisory services, except in the state of California, where we are registered, or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers, believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this web-site should be interpreted to state or imply that past results are an indication of future performance. Neither we, nor our information providers, shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information posted on this or any linked web-site.