Personal financial planning is a process of creating a plan for your financial future. It’s important to have a solid plan in place so that you’re prepared for life’s challenges and can take advantage of opportunities as they arise. In this guide, AG Morgan Financial Advisors will walk through the steps of creating a personal financial plan (or updating one).

The Financial Statement Review And Analysis

The first step in creating a financial plan is reviewing the client’s financial statements. This can be done by looking at their online bank accounts, or requesting copies of their tax returns and credit report from them. Once you have these documents in hand, start by understanding what they mean.

The best way to do this is by learning how each type of statement works:

  • Balance sheet – lists assets (what you own), liabilities (what you owe) and net worth (the difference between assets and liabilities). It also shows how much money was generated during the year through revenue plus any gains on investments like stocks or real estate property sales; this total amount is called “net income” or “profit”.

Asset Allocation And Risk Tolerance Assessment

Asset allocation is the process of deciding how much money to invest in different types of assets, such as stocks and bonds. 

Risk tolerance is the ability to accept investment risk without being emotionally or financially stressed. It’s not a fixed number–it’s more like a range. For example, if you’re willing to lose 20% of your portfolio value before becoming nervous about investing any more money into it (and therefore selling), then that would be considered high risk tolerance for you because there’s still room for more losses on top of those already suffered before getting nervous enough about those losses that you want out entirely.

Portfolio Design And Implementation Process

The portfolio design and implementation process is the most important part of creating a financial plan. This is where you will determine what types of investments are right for you, how much risk you’re willing to take on, how much time and effort you want to put into managing your investments, etc. It’s also where we recommend making sure that all of your goals are covered by the strategy being recommended by your advisor. AG Morgan Financial Advisors is a relationship-driven financial pro who helps clients work toward their goals. Their job is to find the right solutions for each individual’s unique situation and build a plan that works best for them.

As mentioned above, there are many ways to go about this process but we’ve found that most people find it helpful when they start off with an understanding of their current situation before looking forward into the future. Having this context will help guide which investment products may be best suited for their situation–and even if any changes need made!


The process of creating your own personal financial plan can be a daunting one. There are so many options and decisions to make, and it can be hard to know where to start. But with the right tools and information at hand, you can create a plan that works for you. I hope this guide has helped give some clarity on how to go about doing this!

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