It is the process which provides a framework for achieving your life goals in a systematic, planned and proper management of your finances. Financial goals can include buying a home, savings for your child’s education, planning for your retirement or estate planning.
We use our experience to help you create a customized portfolio using an appropriate “Asset Allocation” strategy suitable to your requirement.
Our approach to financial planning is simple and straightforward. However, it is also important that you fully understand our consultative process and our step by step approach.
The 5 most important steps involved in financial planning process which will help you achieve your financial goals and realize Financial Freedom are as below
First step towards financial planning process is to set the financial goal. Where you will have to analyse your short-term financial goals and long-term financial goals along with the objective and time-frame to achieve those goals. It’s a long and time consuming process. Your personal goals cannot be set by financial planner. This is the financial planning process which you will have to analyse for yourself.
Next step towards financial planning process is to draft the financial planning strategy or road map to achieve your goals. Here you can take the advice from financial planner or financial consultant to develop a strategy for your financial plan. While developing strategy, you will go through various investment opportunities available in the market. Take some time to study various investment options which best fit to your requirement.
Once you have selected set of investment options as per your requirement. Next step is to gather information about those investment and perform some analyse on the data. There are various online tools to analyse investment options based on past historical data.
Once you have gathered required information and selected investment option, the next thing in personal financial planning process is to prepare a systematic investment plan and draft an implementation plan. This is one of the important steps in your financial plan.
Most investments are selected on the basis of their past performances. It is assumed that the investment option selected will perform in the same way in the future. But there are times when its future performance diverges from the past performance. So the next step in personal financial planning process is to keep monitoring your capital investment. Reviewing your goals and market situation will assist you in whether to stay invested or to look after other investment opportunities.
It's possible to manage income more effectively through planning. Managing income helps you understand how much money you'll need for tax payments, other monthly expenditures and savings.
Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash.
An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.
Providing for your family's financial security is an important part of the financial planning process. Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones.
A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide to help choose the right type of investment that fits your need, personality and goal.
The savings created from good planning can prove beneficial in difficult times. For example, you can make sure there is enough insurance coverage to replace any lost income should a family bread winner become unable to work.
It used to be called saving for a rainy day. But sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.
Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.
Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.
A nice 'cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset.
The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future.