A financial plan is a comprehensive evaluation of an investor’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Most individuals work in conjunction with their preferred financial planner and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing financial plans. These metrics are used along with estimates of asset growth to determine if a person’s financial goals can be met in the future, or what steps need to be taken to ensure that they are.

The financial planning process typically begins with setting specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals can range from saving for a child's education to preparing for retirement or purchasing a home. Once goals are established, a thorough assessment of income, expenses, assets, and liabilities is conducted to understand the current financial landscape.

Financial planners, such as those at UnionTrust Capital, employ tailored strategies to optimize cash flow, minimize taxes, and manage risks. They emphasize the importance of building an emergency fund, creating a budget that supports saving and investing, and selecting appropriate investment vehicles to grow wealth over time.

Additionally, financial planning includes insurance evaluations to protect against unforeseen events and estate planning to ensure that assets are distributed according to the individual's wishes. Regular reviews and adjustments to the financial plan are crucial to account for life changes, market fluctuations, and evolving personal goals, ensuring that individuals stay on track toward achieving financial security and peace of mind.