Want to learn what is personal financial planning and how it can help you? Keep watching the video to find out how financial planning and analysis can be used to help you to save up for your future goals by investing your savings in appropriate schemes according to your needs and risk appetite.
Let’s try to understand what is financial planning and the importance of financial planning. Everything big in life requires planning and execution. Like financial goals. Even more basic goals, like renovating your house, taking a holiday, and having money ready for emergencies are easier to reach if they’re backed by strong financial planning and analysis.
What is financial planning? A personal financial plan is nothing but a step-by-step approach to meet one’s life goals. Why go for a Financial Plan? Multiple reasons. For one, parental needs are rising, and kids’ dreams are going to cost money. Lots of it! Because don’t forget inflation. It will only make these goals more expensive as time goes by!
Good financial planning and analysis, drawn early and wisely, might have been able to save you from a lot of stress! With a strong financial plan, your savings can be directed into suitable investment vehicles, building a corpus for the important things coming up AND preparing you for the challenges that life will continue to throw at you.
The point is that to turn any dreams into reality, one needs to plan for it. And planning well includes all the key elements like:
• A financial advisor who understands an investor’s needs and goals and can help plan for it
• An assessment of the investor’s personal risk to determine suitable products that will meet goals
• An Asset Allocation Plan to channelize your savings into suitable investment options
• Savings to support or fund those goals
• Execution and monitoring through timely reviews
The main importance of financial planning is to give investors all the information they need to invest money and achieve their goals, keeping in mind factors like time horizon, taxes, inflation and risk. With a strong plan in place, you’re more likely to take care of your responsibilities as well as realize your dreams.
Read more on financial planning here:
https://www.franklintempletonindia.com/templatedata/gw-content/article/data/content-international/en-in-retail/investor/beginners-guide-chapter6-_io04og31
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