|
 |
| |
 |
| |
Financial Planning is not some esoteric concept. It is for everybody who has financial goals to achieve or financial challenges to meet. In fact a lot of rich families believe that they do not need financial planning as they have enough wealth. Nothing could be further from the truth and the countless examples of bankrupt celebrities, industrialists, and sportspersons are enough proof that if not managed well, “Any Income or amount of money can be spent or blown up.”
|
Therefore, Financial Planning / Wealth Management is a process aimed at identifying all needs of an affluent family namely
- Buying a home - Making Real Estate Purchases.
- Saving for their children’s education.
- Protecting their family, business and assets through insurance.
- Investing their hard earned money in a judicious manner. Staying away from exotic and complicated investments.
- Managing debt.
- Planning for retirement.
|
|
|
According to an expert, people who have WRITTEN Financial Plans and follow the plan diligently over their lifetime end up making 5 times more money than an investor who doesn’t have a financial plan.
Translating these needs into monetary goals at various times in future and planning savings, insurance and investments that will allow the individual to provide for and satisfy his future financial needs.
Financial Planning provides direction and meaning to your financial decisions…It allows you to understand how each financial decision you make affects other areas of your finances : for example, buying a particular investment product might help you pay off your home loan faster or it may delay your retirement significantly.
Financial planning can help you :
- Set realistic financial and personal goals
- Assess your current financial health by examining your assets, liabilities, income, insurance, taxes, investments and estate plan
- Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financial strengths
- Put your plan into action and monitor its progress
- Stay on track to meet changing goals…changing personal circumstances…changing stages of your life…changing products, markets and tax laws
|
|
Why Clients do not plan?
THERE ARE MANY REASONS why clients may not undertake financial planning on their own, including the following :
- Thinking they have insufficient assets or income to warrant planning
- Assuming their financial situation is in good order
- Putting off what is complex and worrisome
- Not wanting to consider unpleasant events, such as death, disability, unemployment or property loss
- Thinking Financial Planning is expensive
|
|
ALL these Assumptions are FALSE. Of course, Failing to plan also COSTS Money.
Consequences of Not Planning include the following :
Click here to know about Financial Planning Process... |
| |
|
| |
|
|
