FAQ
​Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals
​Every individual who wants to meet short- and long-term financial goals, needs a Financial Planner.
Your responsibilities as a client are:
-
To communicate clearly and honestly with your advisor so they understand your financial circumstances, investment objectives, and experience.
-
To ask questions about investment matters that you do not understand.
-
Be realistic in your expectations
-
To track & monitor your investments based on your changing needs
​Even the most prudent person can’t prepare against every crisis, as the world learned in the pandemic and many families learn every month. What thinking ahead does is give you a chance to work through things that could happen and do your best to prepare for them. Financial planning is a common-sense approach to managing your finances to reach your future life goals. This should be an ongoing process so you can shape your life and goals to fit the changes that will inevitably come. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results.
You may decide to seek help from a professional financial planner if:
-
You need expertise you don’t possess in certain areas of your finances. For example, a planner can help you evaluate the level of risk in your investment portfolio and revise your asset allocation;
-
You don’t feel you have the time to spare to do your own financial planning;
-
You know that you need to improve your current financial situation but don’t know where to start;
-
You feel that a professional advisor could help you improve on how you are currently managing your finances;
-
You have an immediate need or unexpected life events such as an inheritance or major illness;
-
You want to get a professional opinion about the financial plan you developed for yourself.
​To date, I couldn’t be able to understand what is the definition of enough income. No income is enough if you don’t have control over your expenses. Everyone has some financial goals to achieve in life, some are certain and some can be avoided or postponed. It’s all about priority. You just have to be disciplined and structured in your savings and spending approach. Financial planning will help you in everything.
​Does this mean once financial plan is written, financial planning is over? Or in other words , is financial planning involves only writing of a financial plan?
Not at all. Writing of financial plan is just a starting point. As your financial position is impacted by many internal (personal expenses, desires, health, inheritances, family functions, responsibilities, etc.) and external (taxes, inflation, economic and job scenario, etc.) factors, so your plan has to be timely reviewed, tweaked upon to make the necessary changes wherever required. Financial planning is a continuous process in which a financial planner will do the handholding and guide you through your financial life as per the financial plan.
​While your financial planner may make a different recommendation based on your circumstances, it’s a good idea to see him or her twice a year. You should also consider making an appointment in anticipation of life-changing events such as marriage, the birth of a child, divorce, or after inheriting a large amount of money.
Stay actively involved. Executing on your financial plan is a team approach. If you have someone managing your investments, they should execute on your investment strategy. There will be other things like managing cash flow, opening accounts, and saving or spending at the “planned” levels that will require your active involvement. Communication and follow up with your planner will help you adjust to the bumps (up and down) in your roadmap to maintain the lifestyle you choose.