Financial planning is an art to manage one's finances in a scientific manner. Financial planning helps an individual make calculated provision to meet his future goals and needs. The financial planner takes stock of the existing portfolio and resources of the client to sets up a plan to meet those objectives. It includes investment planning, tax planning, insurance planning, cash management and budgeting, retirement planning and estate planning.
Who is a financial planner?
A financial planner is the financial or wealth Doctor of an individual. He carries the entire plan and implements on it subject to client's approval. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs.
How does a financial planner create this personal financial plan?
It is important to remember to find financial planners who are committed to work jointly with clients to produce a comprehensive, customized financial plan and wealth / money management, enabling them to make wiser financial choices. It is preferable that the planners are FPSB certified planners, CFPCM
Financial planning is a multi-step process that provides you with two important things: (1) An in-depth review of your current financial situation, and (2) a personal financial plan that shows you how to achieve your goals and objectives for the future. It is important to remember that financial planning is a continuing process ... not an event.
The financial planning process can be discussed as follows:
- Establishing and defining the client-planner relationship
- Gathering client data, including goals
- Analyzing and evaluating the client's financial status
- Developing and presenting financial planning recommendations
- Implementing the financial planning recommendations
- Monitoring the financial planning recommendations
What should I look for in a financial planner?
A financial planner works for you. His or her loyalty should be to the client, not the product (s) he is trying to sell. The financial planner should be in a position to provide you with unbiased advice and recommend products that match your needs and are the best performing ones available. Look for any affiliations of the financial planner to any product manufacturer. Until unless the financial planner is truly independent, (s) he will not be able to give you objective advice. We should look for Certified Financial Planners from FPSB to ensure that they are competent and unbiased.
Who can benefit most from financial planning services?
Any body and every body need financial planning in today's world. In fact it is there from the time even before currencies were there. Any body seeking financial peace of mind and financial freedom can benefit from financial planning services. In addition, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from financial education programs.
