What is a Financial Plan?
Financial plan is a map that helps to chart a persons goals and expenses of future by taking into account current earning capacity.
Everyone goes through similar life-cycle but preferences and earning capacity of each individual varies. During the life time the individual has many goals to fulfil like children’s education, expense management, retirement etc. A financial advisor helps achieve these goals through detailed assessment of the clients financial.
A financial plan broadly answers the following:
Where to invest.?
How much to invest?
For what to invest?
The financial plan is dynamically managed i.e. it changes as the client goes through different life-cycle. This is the reason why people depend on expert financial advisors to make their Financial Plan.
” A goal without a plan is just a wish. ” – Antonie de Saint-Exupery