Final answer:
The fourth step in the financial planning process is strategic planning. It's a key part of aligning financial decisions with long-term objectives. Investing and risk management are also vital parts of financial planning.
Step-by-step explanation:
The four steps of the financial planning process are: financial management and planning, annual budget planning, performance reporting, and strategic planning. Strategic planning involves setting long-term goals and determining the resources needed to achieve those goals. It's an essential component of financial planning because it focuses on aligning a business or individual's financial decisions with their overarching objectives.
Investing is fundamental for wealth accumulation and should be integrated into one's financial strategies. Early investment allows the nest egg time to grow, while diversification and knowledge of financial assets such as stocks, bonds, and mutual funds can help manage risk. Additionally, maintaining a budget is crucial to ensure a balance between income and expenses.