Financial Planning – Investment Allocation Guide

Financial planning is an important aspect of human life as it helps individuals set and achieve long term financial goals through investments, tax planning, asset allocation, risk management and retirement planning. It means maximizing your wealth by investing in different asset classes to take advantage of their unique risk, reward and liquidity attributes. Therefore, investors need to understand their financial needs and goals, understand their investment choices, and determine the appropriate mix of different investment choices. Financial planning is generally a good idea to start as early as possible when a person starts earning, so that they can benefit from compounding benefits until they reach retirement. Compounding means to calculate the interest you pay by adding the interest earned previously to the principal. Each investor has different goals in life, and financial planning is necessary to systematically and systematically achieve those goals. He/she can make the best use of available resources (finances) to achieve greater returns and achieve them within his/her timeframe.
Thus, in clear terms, financial planning identifies all of an individual’s financial needs, translates those needs into monetarily measurable goals at various times in the future, and enables the individual to provide for and meet future financial needs and achieve life goals. do. The purpose of financial planning is to ensure that the right amount of money is available at the right time in the future to achieve personal financial goals.
A financial goal can be one of the following:
ï Buying a home

ï child education and marriage support; or

ï for retirement

These can be measured in monetary terms.
An individual’s financial needs are of two types: protection and investment. not
A source of income to provide for his family to continue to have an income after his death.
Death is an example of a need for protection. wedding expenses
‘s daughter is an example that requires investment.
Thus, financial planners help clients make the most of their existing assets.
Utilize financial tools to secure financial resources to achieve financial goals.

So mathematically we can say:
Financial Planning: FR + FT = FG
where,
FR = financial resource
FT = financial instrument
FG = financial growth

Introduction to Financial Planners

A financial planner is a person who uses the financial planning process to:
Helping others decide how to achieve their life goals. key
A financial planner’s function is to identify your financial planning needs.
products better suited to meet their current priorities and their goals.
Required.
Financial planners typically have extensive detailed knowledge.
Although providers of financial planning tools and products, the primary role of planners is
Customers choose the product that best suits their individual needs.
Planners can see the “big picture” of their clients’ finances.
We propose a financial plan that is right for you.

Planners can see all of their clients’ needs, including budgeting and savings.
role. Investment, insurance and retirement plans or planners can work.
With the client on a single financial matter, but within its overall context.
situation. This distinguishes planners from other financial advisors who:
Tax advisors and insurance agents
Certain areas of a person’s financial life.
Fundamentals of Financial Planning
Financial planners typically pursue “life cycle stages” to create well-defined financial plans for their clients. Because the requirements for each phase of the life cycle are different, financial planners must carefully devise a financial plan that is right for their clients so that they can successfully achieve their goals within a given time frame and resource level. However, as people get older and their personal circumstances change, priorities will change.

The life cycle of any individual can generally be subdivided into the following stages:
ï childhood stages
ï young unmarried stage
ï young couple step
ï Young Children Reporter
ï Married with older children
ï Post-Family/Pre-Retirement
ï Retirement stage

Steps to get the most out of your financial plan:
To get the most out of their financial planning, retail investors should consider the following steps:
1. You must know your goals well and have clear insight to achieve them.
2. You must clearly estimate the time frame for achieving your goals from your own personal experience and observations.
3. Don’t rely solely on financial advisors.

 

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