Financial plan - Financial definition
Concise definition of the term financial plan
A financial plan is a comprehensive document that outlines an individual's or organization's financial goals and the strategies to achieve them. It typically includes details on budgeting, investments, savings, and risk management.
Comprehensive definition of the term financial plan
A financial plan goes beyond merely listing financial goals; it serves as a roadmap for achieving long-term financial stability and growth. It involves an in-depth analysis of current financial status, including income, expenses, assets, and liabilities. Practical examples include retirement planning, college funding, tax planning, and estate planning.
Financial plans are tailored to individual circumstances and may utilize tools like financial forecasting and risk assessment to anticipate future needs and challenges. Market practices often involve regular reviews and adjustments to the plan to respond to changing life circumstances and market conditions. Financial planners or advisors typically assist in creating and maintaining these plans, ensuring they align with the client's evolving financial landscape.