What Is Financial Planning ?
Financial Planning is the PROCESS of creating strategies, by considering all
relevant aspects of YOUR FINANCIAL SITUATION, to manage your financial
affairs that help you to meet your LIFE FINANCIAL GOALS.
Financial Planning is all about understanding:
- Impact of your Financial Decisions
- Financial Security for your dependents
- Your Risk Tolerance
- How to maximise your Tax Saving and reduce Tax implications from investments
- Importance of Goals & Aspirations and attaching your all investments with specific goals.
- Ensuring comfortable retirement
- Will writing & a good Succession Plan
Why is Financial Planning needed ?
In the words of the greatest investor of all times, Warren Buffet “An idiot with a
plan can beat a genius without a plan".
Financial Planning takes this important statement into consideration. It lays
emphasis on the creation of a process (Plan), by analysing a client’s current
financial position, and client’s future needs. By considering all relevant
aspects like taxes, inflation, power of compounding it suggests an action plan,
which need to be executed by determination, patience, persistence and
financial discipline.
The role of a Financial Advisor is that of mentor, helping the client in this well-
planned financial journey. Depending on the market dynamics, he takes
necessary corrective actions in the client’s portfolio, balancing, re-balancing
and suggesting changes as the situation demands.
