Financial Planning- A passing fad?
“Follow the money” this is what the investigators did in the Watergate scandal when it hit a roadblock and the trail helped them reach the culprits.
But you don’t need a scandal to start thinking about your hard earned money. Times are a changing and managing money has become a job in itself.
That’s where someone saw an opportunity and brought about a revolutionary concept to define money management “Financial planning”
FP consists of risk management, insurance planning, investment planning, tax and estate planning
FP is for salaried class of individuals and families. It is all about bringing individual financial needs and aspirations of the future together and managing money so that they are able to live up their life securely.
It’s about defining your current income sources, your future needs and investing in a manner that everything is taken care of without having to leave you with an uncertain future.
A Financial Planner has to manage your money within the dynamic financial environment and your own fluctuating future expectations. Nothing is set in stone and can be tweaked but has to be able to live up to the big picture i.e. financial security.
Anything that has to do with money is a part of financial planning. From taking people out of debt trap to taking measures to avoid it, to providing financial advice considering the persons risk appetite, FP is a concept from an individual point of view.
Every financial company be it banks or brokerage houses have products from a generalised point of view. But a financial planner makes a plan and buys a product from the client’s point of view.
Financial planner stands for you so that no one is able to take advantage of the client’s ignorance.
FP is a be all and end all for all financial needs of an individual.
IF you have a financial planner, he is following the money for you.
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