“If you need a financial advisor or counsellor look for someone with the heart of a teacher”.
Financial planning is a key aspect in today’s world of inflation every one wishes to maintain a healthy situation of wealth in his life. With regular earnings, one can maintain the household expenses & other necessities. But there are some other charges also which need to be met out of the same earning itself.
But there are some unexpected expenses like medical expenses any other casualty which requires a large sum of money and which is totally unplanned. How all this can be done? A small question arises in the mind of every salaried person because these all need to be planned with the current earning which can meet all the requirements.
Financial planning refers to the process of streamlining the income, expenses, assets & liabilities of a household to take care of both current & future needs for the funds. It is thus a process that enables better management of the personal financial situation of a household.
It works primarily through the identification of key goals and putting in place an action plan to realign the finances to meet those goals. It is a holistic approach that considers the existing financial position, evaluates the future needs, puts a process to fund the needs, and reviews the progress.
Need for Financial Advisory Services:
The main task of an advisor is to ascertain the needs of his clients to understand his requirements and link them to various financial products available. As we know everyone having a different approach towards life, so an advisor needs to plan all the factors & suggest them the instruments accordingly. An advisor is a person who understands the importance of all financial products on one hand & the needs of the client on the other side.
The following are the primary reasons why financial advisers are needed:
To maintain personal finance many people due to there busy schedule not having time to maintain there own finance due to lack of time & there other professional tasks, As financial planning requires time & attention, to meet the future needs. As many verities of asset classes are available a person needs to understand them first as per the future objective.
Estimating financial goals, finding suitable products, and arriving at suitable allocations to various assets require specific expertise and skills which may not be available in most households.
Asset allocation is a vast approach one should first understand the needs and requirements of the client then plan to manage it as per the requirement of the client. A professional adviser with capabilities to compare, evaluate, and analyze various products enables making efficient choices from competing products.
Financial planning is a dynamic process it requires proper attention, market situations kept on changing an advisor needs to reallocate the sum as per the situation demands.