What is Financial Planning?

 

Financial Planning is not about asset allocation or few insurance policies or portfolio management. It is the process of achieving what you aspire for. It is something about knowing yourself and knowing what you want to do. It is more about strategy and very less about products.

Financial planning is the process of managing one’s financial resources through a financial plan which enables him to achieve his dreams and goals by negotiating the financial barriers of life. It is a requisite for all the stages of life. The earlier you start the better prepared you can be.

 

A Financial Plan:

~ Provide clarity on your finances

• Helps to identify and prioritize your goals in life.
• Help you distinguish what's realistic for your circumstances from what's not.
• Help you by giving you a realistic view of your financial situation.

~ Give you a clear roadmap

• Your planner gathers your financial data and then evaluates your investments and requirements.
• Design a personalized financial plan by making the most of the resources you have and can develop.
• Protects and prepare you for unforeseen events.

~ Feel Prepared for the future

• Help you implement detailed strategies to enable you to carry out the plan.
• Periodically review your plan and update it with changing circumstances that may occur in your life.

Financial Planning is a continuous activity involving investment management, cash flow planning, retirement planning, insurance planning, tax planning and estate planning.