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About Financial Planning |
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One of the fast growing services today is financial planning. Though the service has been there for years in developed markets, in India its still in nascent stage. It has been provided by several vendors in a crude form and with various names. A comprehensive financial planning service is a very wide gamut and has several facets. Theoretically it is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. |
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It has been observed that individuals are not very clear of their life goals. Only if they are provided with certain questions, they can relate it to themselves and then perceive it as a goal. For example, if you are asked “Do you aspire to go on a month long Europe tour in next 5 years”? The immediate reply would be a straight Yes. However, you might not have planned financial for such a goal. Only if certain unexpected cash flow or windfall gain is received, you would think of going ion the tour. Here comes the role of financial planning which attempts to outline all you financial goals and identifies a roadmap to achieve the same. At the same time, financial planning aims to channelize your finances in such a fashion so as to increase your net worth gradually over time. |
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Hence financial planning identifies financial problems that create barriers to achieving financial independence. Problem areas can include too little or too much insurance coverage, or a high tax burden. The client’s cash flow may be inadequate, or the current investments may not be winning the battle with changing economic times. |
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While embarking on a journey to achieve the financial objectives, it is necessary to prioritize amongst them. Making investments in a haphazard manner may not yield the desired results. Any investment choice should ideally depend upon one’s own profile and requirements. Any investment choice should be preceded by a careful introspection of one’s one needs and requirements, analysis of income and expenditure and last but not least, an objective prioritization of the goals. |
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Financial Planning comprises of 7 elements such as: |
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To know more about Financial Planning & to avail the service ... Click Here |
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