Steps to the Financial Planning Process:

1. Identifying and setting short, intermediate and long-term goals. Ideally, each goal will have a date and dollar amount attached to it. 

2. Evaluating your current situation - cashflow analysis and calculating your net worth. You need to honestly assess your current financial status, including positives and negatives. 

3. Review your insurance coverage, including life, disability, home, auto, umbrella liability and long-term care. 

4. Review your current tax situation to identify tax-saving opportunities and potential deductions.

 

5. Review your estate plan to ensure that your will, living will, healthcare power of attorney and other estate planning documents (revocable living trusts and durable power of attorney) are up-to-date and valid. 

6. Develop a retirement funding plan that covers when you plan to retire and how much you will need to support your retirement lifestyle.

7. If you have children, develop a college funding plan to help cover higher education expenses.

8. Develop an overall investment plan with proper investment portfolio that supports your goals, while staying within your investment time horizon and risk tolerance.

All of these areas will help you develop your initial financial roadmap.

Finally, review your plan and progress periodically by giving yourself an annual check up to make sure you are staying on track. Life will throw you a curveball from time to time; divorce, a serious illness and an unexpected job loss can all affect your financial plan. So be prepared and be flexible.