Investment planning

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Investment planning - the process of making an investment plans according to your resources and targets of the company, using financial planning as the main implement. The are three the most important rules of investments: starting early, regularly investing and increasing returns on these investments. Investment planning meets the goals of client by managing its finances, brings direction and sense to financial decisions. It gives an understanding of how other areas of finances can be affected by every financial choice[1].

Planning process

The process of investment planning consists of mutual understanding between the financial planner and client, who wants to invest. The planner has to educate investor about the most usual mistakes and help to come over them. His responsibilities cover taking the client through the classic process of financial planning as well[2]. Their interaction is a row of quite detailed data sharing from the client to the planner[3]:

  • Investment strategy making starts with determining and specifying company's relationship with the client. This step is necessary so as to define goals, financial requirements and objectives, which will help to form the connection with the customer, studying their attitudes towards internal and external factors that can affect their finances.
  • The next move is to help your client to set up short - and long-term targets as they relate to estate, insurance, retirement, educational funding and tax planning needs. Investment planning needs will be the result of all other requirements because they all contain funding and investing components.
  • After that, the client has to give the financial planner the current financial data, that includes savings, retirement, social security, insurance and many other declarations.

All these components are also very important while making the financial and investment plans. Once analyzing all collected data about client's goals and financial state, the planner should make and present an exact plan according to all needs, which were submitted. If the customer accepts it, the realization of the plan can begin. While implementing the admitted strategy, good investing plan will be a significant component in ensuring that the client has good chances to succeed and increase income to maximum according to the financial plan[4].


  1. IMS Proschool 2012, p. 3-5
  2. IMS Proschool 2012, p. 5
  3. Hirt G.A. and others 2010, p. 2
  4. Hirt G.A. and others 2010, p. 2

Investment planningrecommended articles
Objectives of the organizationBusiness planPrinciples of financial planningCash controlFinancial planningPolicy statementProject feasibility studyPerformance analysisInvestment proposal


Author: Uladzislau Leonau