Financial Planning

Financial Planning is a process where an individual will look to secure his present and future needs with the help of a professional who in most cases is a Certified Financial Planner (CFP). Financial Planning is a very broad term and it includes various aspects like life insurance, health insurance, retirement planning, savings & investments, tax planning, wills, estate planning etc.

You must agree with me on this that most of us does not have a specific financial plan for our present and future needs like insurance, retirement planning, children education and their marriage, medical emergencies, income protection. This is one aspect of our life which we usually keep on delaying, thinking that everything will fall in place in future but are often disappointed when our needs and expectations are not met.

Some of us even try to do this on our own and often get disappointed with the results as this a job of a professional who will take a holistic view of our personal and financial situation and will suggest the best possible outcome.

This is where financial planning comes into picture for an individual and his family. It is a job of the CFP who will initially carry out a fact finding process of an individual for his / her present and future financial needs. For this exercise the CFP may require detailed personal and financial information from the individual to create a very specific financial plan. The information gathered will include some hard and soft facts like income, expenses, existing investments, assets and liabilities, medical history, ethical concerns to name a few.

The CFP will analyze each and every information about the individual and will provide a suitable advice as per the individual needs and circumstances.

Now the individual will have a formal plan in place to achieve the short and long term objectives which could be to protect his family in case of death or disability, saving for retirement, wealth creation etc.

Preparing a financial plan and implementing it is just a beginning and not an end.  For a financial plan to be successful it needs to be reviewed regularly as there might be some changes in the individual circumstances which need to be accommodated in the financial plan. This could be marriage, arrival of a new family member, change of job, performance of the existing investments like mutual funds, review of wills, retirement plans, and inflation.

A financial advice cannot be same for everyone and it could be different for each individual as needs and circumstances are usually different. A financial plan cannot be shoe horned for all individuals and has to be tailor made.

A financial planning is a very important process in an individual life which first needs to be acknowledged and proper steps should be taken to implement this with a help of a Financial Planner.

Sandeep Kumar Yadav

Certified Financial Planner

1 thought on “Financial Planning”

  1. Vikash Kumar Singh

    I have known Sandeep for some time now. Punching above its weight, he and his small team delivers an excellent level of service, every time, in all things and to the highest professional standards. He truly listen to the needs of their clients and gives supreme attention to their investment objectives. He strives to keep us informed and abreast of the developments in the market so that we are able to an informed decision. I would highly recommend #Centomintfinserv.

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