Financial Plan

Financial plan

A blueprint relating to the financial future of a firm.

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Financial Plan

A summary of a company's financial needs or goals for the future and how to achieve them. Corporate financial planning involves deciding what investments and activities would be most appropriate under both the company's individual and broader economic circumstances. All things being equal, short-term financial planning involves less uncertainty than long-term financial planning because, generally speaking, market trends are more predictable in the short term. Likewise, short-term financial plans are more easily amended in case something goes wrong.

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Financial plan. A financial plan is a document that describes your current financial status, your financial goals and when you want to achieve them, and strategies to meet those goals.

You can use your plan as a benchmark to measure the progress you're making and update your plan as your goals and time frame change.

Financial planners and other investment professionals can help you create a plan, identify appropriate investments and insurance, and monitor your portfolio. You may pay a one-time fee to have a plan created, or it may be included as part of a fee-based account with a stockbroker or investment adviser.