Comprehensive Financial Planning is a process of taking a holistic view on client’s financial information so as to meet his financial objectives in an efficient and disciplined manner. Financial planning is a highly personalised service that requires a thorough understanding of the process involved. It requires constant attention as the needs of the client changes as time passes by.
There should be a strong bonding of trust between the financial planner and the client. Financial Planner is just like a doctor who will take care of your financial health and will advise you always in such a manner to maintain and increase your wealth. The first and foremost issue involved in the financial planning process is to lead the client in setting clearly defined goals. Also, the planner through his conversation should be able to establish quantifiable goals. Once specified and quantifiable goals are established and categorised in short, medium and long term, a financial plan can, then, be developed keeping in mind client’s current circumstances and risk appetite. While preparing the plan, planner is required to make certain trade-offs so that the client can have free cash inflows at regular intervals for the rest of his life.
Broadly a good financial plan seeks to address the following:
The current generation retires at its own time and on its own terms
The current generation will never become a financial burden to its children and will be able to support its parents
This generations capital will endow meaningful legacies to succeeding generations
The children will be able to afford the best education
That the family’s life style and all the abovementioned goals will not be compromised by the premature death or critical illness of the bread winner.
Financial Planning – Its Increasing Relevance in the Present Scenario — Click Here —
Financial Planning Process — Click Here —