Private financial plan (personal financial plan) is the synthesis from management economics, tax and legal advice, mathematics of finance and the deepened knowledge over products of the bank, insurance and real estate industry. It is structured a systematic process, during which analyzes financial conditions of the private household of a customer, after liquidity, fortune, net yield and risk security, as well as to be afterwards optimized. Their starting point is the detailed stocktaking of the fortune, the incomes and expenditures, and the security against certain risks. A goal of the private financial plan is it, the short, to coordinate central and long-term goals and desires of the customer with its financial possibilities.

Situation

The predominant part of the capital investors is not itself over the hit way during structure of fortune and fortune safety device at all in the clear one. Investment is opportunity thing. Ith D dominates. R. starterreferred decisions over loan photographs, conclusions of insurance and investments. Isolates met recommendations of a multiplicity of different advisors in the individual financial areas are subject to no effective co-ordination, so that no total concept of the plant, financing and precaution strategy stimmiges in itself can develop. The consequence is in most cases one coincidence-causes developed fortune structure, over which the investor possesses frequently only rudimentary information and which pretty often in the contradiction to his original investment objectives and his prepared to take risks shank and/or - ability.

The private financial plan, every now and then also as Financial Planning designation, avoids such a bad state, which from the indiscriminate purchase and sales of financial products develops.

Expiration

A private financial plan goes through 5 phases:

1. Data acquisition
2. Data analysis
3. Financial plan production
4. Strategy discussion with the customer
5. Conversion of the financial plan recommendations

In the first phase the data relevant for the financial plan are raised. Here the customer is asked by means of a questionnaire and in discussions to all aspects of his financial and private situation. The second phase covers the evaluation of the collected data by means of a special financial plan software. The pressure-technical execution of the results of the data analysis in form of the so-called financial plan, which is an appraisal over the financial situation of the customer, contains the third phase. Hieran follows the strategy discussion. In this the financial plan is presented to the mandate and the determined results as well as the recommendations for action is described in detail. The mandator thereby keeps for the first time a comprehensive view of his financial situation and a view multiple on in the next years the occurring development of his finances. If the financial plan results promote an adjustment need with the mandator in individual ranges of its financial structure to day, then the conversion of the strategic recommendations for action takes place in the fifth phase.

In "“confine"” view is, respectable with the delivery of the planning report final the financial plan with the strategy discussion. The order of the customer "“providing it me a financial plan!"” is then final. The conversion of the recommendations are new orders of the customer and belong therefore not in "“confine"” view.

Manifestations

The term "„private financial plan "“for the new service is not uniform. Every now and then terms are used like "„fortune analysis "“, "„fortune structure consultation "“and "„fortune planning "“, in order to clarify the holistic beginning of the new service. Of the designation two forms "„of the private financial plan can independent be differentiated "“. On the one hand as selling instrument to the paragraph of financial products. This beginning is called frequently "„Financial Planning "“and is in the financial service industry (banks, insurance etc.) to be found. A goal of the financial plan is the conclusion of contracts over financing, plant and insurance products.

On the other hand the service is offered to the customer also as independent advisory activity, it permits to receive an overview of its financial situation, independent of interests of selling. As offerers here tax counsels and free fee advisors function.

Literature

• The financial planner. 1999
• Farkas et.al.: Private financial plan. Investment and taxes. 2003
• Kruschev: Private financial plan: The new service for fastidious investors. 1999
• Schmidt: Personal financial plan, Springer publishing house 2006

Related links

• References to the private financial plan (not commercial)

Articles in category "Private financial plan"

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