A good financial planner provides advice for all types of financial planning products - income protection, retirement, education, health, cash flows, insurance etc.
How much should I save?
There is no rule of thumb toward savings, because it is a variant of age and income level. One should look at atleast saving 20 percent of his income. If you find that is too high for you, don't let that deter you. You can start by putting a little aside each month and then slowly increasing it.
Is it wise to provide so much of personal information?
As we know a financial planner is like a financial doctor, now consider a visit to your doctor!! Without complete and fully accurate details, your doctor cannot prescribe the best course of action. The same applies to financial planning. In order to obtain the best service for your 'financial health' all details and specifics must be disclosed.
What type of information do I have to provide?
Typically, information regarding investments held, number of dependants, income and expenditure details, savings and financial planning needs, etc. The more accurate information you give, the better the quality of advice given.
What should a financial plan include?
A financial plan should include a review of your net worth, goals and objectives, investment portfolio, cash flow, investments, retirement planning, tax planning and insurance needs, as well as a plan for implementing your goals.
Why is there an evaluation of my insurance needs?
Insurance and investments are both important in one's portfolio. Insurance takes care of your unpredictable whereas investments take care of your predictable needs. The insurance industry has changed a great deal over the past few years and there is a whole array of new products from LIC as well as private insurance companies. Insurance has also been termed as an investment product in few cases.
What about taxes?
Tax is very important part in a financial plan because it helps in saving more. It is important that financial plans are tax efficient. The financial plan should help you in minimizing your tax liability and also maximizing your after-tax returns from your investments. Some financial planners help their clients in preparing and filing their tax returns.
