1. Gather Data—The more information you gather with respect to your financial situation and the more complete information you give to your professional advisors, the higher likelihood that your overall financial plan will be suited best for you.

• Assess your current situation.
• Analyze your family data.
• Outline goals and objectives.
• Align objectives for both spouses.
• Determine what you actually want, not what you think you should want.
• Analyze your risk tolerance.
• Determine your investment preferences based on your desired level of liquidity, debt, risk and return, and management effort.

2. Define and Quantify Goals

• Set achievable goals.
• Write your goals down.
• Remember that time and risk tolerance affect the achievement of your goals.
• Set goals for all time frames:
• Short range goals
• Education and career development
• Major short-term purchases
• Vacations and celebrations
• Long range goals
• Education of children
• Wealth accumulation
• Retirement
• Testamentary goals (goals that take effect after death)
• Protection of loved ones
• Estate preservation
• Charitable gifts

3. Develop the Plan

• Determine how to get from where you are now to where you want to be.
• Determine your risk tolerance.

4. Implement and Monitor the Plan

• Implement your plan.
• Assess urgency of any phases of the plan.
• Select and acquire specific products and instruments to achieve your goals.
• Monitor your progress.
• Periodically review and update the financial plan.
• Revisit goals and objectives to assess any changes.
• Review plan assumptions like inflation and interest rates.
• Analyze lifestyle changes.
• Analyze impact of changes in laws/regulations.

5.  Other basics for financial planning and investing

• Understand tax consequences and let them be a factor in making your decisions.
• Consult with your advisors before you enter into a major financial transaction.
• Evaluate what is reasonable for you and your needs.
• Understand your responsibility in fully implementing your financial plan.