Financial Planning

posted by : Moneybase


Financial planning is a term used widely in the financial services industry. Financial planning is a process to achieve all your goals of life. Usually the goals are child’s education, marriage, buying a car, purchase/construction of home, improving lifestyle and retirement. These goals are achieved by doing activities like budgeting, goals setting, saving and investing, review and evaluation.

Financial planning can be done by yourself or you can avail the services of professional financial planners. Professional financial planner will help create a financial plan for you and will advice on the action steps.They will review it with you periodically.

Financial planning process from a financial planner

    • Gather data and necessary information from you. They will ask you to fill exhaustive questionnaires seeking information on your income, expenses, short term goals and long term goals. To as certain your risk taking capability they will conduct a risk profile.
    • With the information you provide the financial planners will do a thorough study of your needs and understand you personality and risk taking capability. With their expertise and knowledge they will make a plan for achievement of all your goals.
    • Financial planners then will come up with recommendations and advice. They will guide you and show you the way forward. Implementation will then have to follow.
    • Financial planners will review the progress periodically and answer your queries and doubts.

Advantages of financial planning

The advantage of doing a financial planning whether self-done or guided by a financial planner is pretty much straight forward; you will achieve your goals and live an abundant financial life.

Engaging a professional financial planner will bring in the benefits of expertise, professionalism and discipline.