The financial planning is a path by itself to achieve future financial goals by meticulous planning. Typically, financial planning is a plan to mitigate current risks and a strategy for wealth creation and financial security over time. The process involves in understanding and analyzing the current financial status, setting up the goals, risk profiling, cash flow analysis and asset allocation, crafting the portfolio, product and scheme selection based on third party and proprietary research tools, monitoring and re-balancing the portfolio depending on the status change or portfolio performance. Financial planning is not a one time effort it is a continuous process and needs to be reworked periodically.
Because money can buy many things now and in future… Financial success is one of the major dimensions of an individual and plays a vital role in all other spheres of life. Even though personal finance occupies an important place and foundation for to be successful in other areas, we hardly spend time in planning and managing them effectively. We tend to ignore personal finance for a simple reason that it is still a subject matter to be guarded as a personal secret and not to be discussed or revealed to others. In an age of advancement of medical technology, and increased competition at work place and in business, an individual's retirement years will out number the employment years. All successful investors worked hard while earning, judiciously planned their investments and made investments to work for them in later years.
Life is full of uncertainties; future scenarios like investment opportunities, interest rates, inflation, taxes are unpredictable. It is difficult to control these external things and a person with a proper financial planning will at least be guaranteed with more wealth and peace than a person who do not have any planning. A good financial plan will not only help to achieve the family financial goals in time, with ease but will also ensure to prepare for what can happen and for an active and graceful retirement.
One may still be able to merely fulfill those family financial objectives, just as an obligation and will continue to ponder how to manage and drag a very long retired life with inadequate incomes. It is like taking a bungee jumping without checking the length of the string. The questions like will the children's academic aspirations be met without taking a loan, will the housing loans be paid off in time, will the retirement fund last long enough, will the real returns be adequate, will the incomes be sufficient to meet contingencies, will there be sufficient estate to leave behind, will the dependents take care of the estate properly etc., It is prudent and sensible to plan in advance to avoid those nibbling situations in the future.
"Financial planner is like a working partner in your investment business; find a trustworthy and experienced financial planner."