In this modern age
and economy, everyone should know about savings and financial planning to
protect themselves from the abrupt financial crisis. Savings are great, but it
alone might not help us in long term goals and on the other hand Financial
Planning gives you the right direction to manage your wealth, save and increase
wealth for both short and long term. That’s why People who know the value of
planning always rely on Financial Planning to manage their money. A Financial
plan will provide you a road map to make your life financially stable. It can
make your life less stressful, more fun, and more successful.
But most people
don’t possess the required knowledge or skills to manage their finances on
their own. And that’s where a
professional like Financial Planner will come for help. A Financial Planner is
a certified professional who works for the people to give advice and guide them
on the financial planning of their finances.
They give their service for all kinds of financial services for tax
planning, investment planning, retirement planning, estate planning, insurance
planning, and even Business plans for business owners. That’s what the job of Financial Planner is; they will use their skills to create a plan that matches the
client profile and give a detailed financial plan that covers all the
aspects. Here are the 6 steps that are
followed by a Financial Planner to give a proper financial plan to a client.
Examines the
current financial situation – Firstly, the financial planner will gather all
the information regarding your present financial situation such as Total Net
worth, cash flow statement, tax returns, investment profiles, insurance,
pension plans, etc.
Identify the goals
– Then, they will help the client to identify both the financial and personal
goals that are realistic, specific, measurable and time-bound by analyzing the
current situation. And also satisfy their future goals such as children higher
education, marriage, world tour, etc.
Risk Identification
– Financial planner will identify different financial obstacles in achieving
the financial objectives as high tax returns, improper cash flow period,
insurance coverage issues, etc.
Financial plan
designing – After identifying goals and risks, the financial planner will
create a financial plan that covers all the financial goals and overcomes these
risks associated with it.
Implementation of
the plan – Financial Planner executes the plan to reach the desired finance
goals and independence.
Guidance – Lastly,
financial planner provides periodic guidance and revision of the plan to ensure
that their client reaches their financial goals.
Financial Planners serve as an ultimate savior
when it comes about financial planning to reach our desired goals both
financial and personal wise. They are the only persons who can make your life
financially independent.
