How to assess your financial situation and plan for the future?
- Make your case: what is your problem statement? Is that you lack a plan? Or do you have a plan but you have not enforced it such as "get an RRSP at age 25" which is still not done since you did not take it seriously Or perhaps your looking for a way to streamline existing processes.
- Be sure to list out specific and quantifiable opportunities for improvements. Example "Invest $X in Mutual Fund 1 and after 5 years make $Y from the same fund"
- Cite resources: Ask your advisor for examples how he made some people successful in their financial plan, ask him to provide case studies and then also choose your advisor carefully
- Gap Analysis is the comparison of a current performance vs. the potential for performance. For example if I get a Life Insurance today for $X how much will I have to pay per year in $ and when I am not alive how much will I get back? Or If i invest in this mutual fund $X and after 5 years how much should I have $Y?
- This references the "Measure" stage (Part 2): we spent some time discussing what to measure/how to measure it, and the areas you've identified as needing improvement. That information should be compiled here as a reference/starting point.
- The last component to be sure is included in the business case is your best practice flow: what are the "plans."
- Setting your overall financial (strategic plan): what you hope to accomplish from implementation
- How will you accomplish this strategic vision? You need to have a carefully laid out road-map or action plan.
- Lastly, you need to be sure you have a solid communication plan in place for all parties involved in the project. Note: communication plans will differ depending upon the audience.