| Financial Planning | Goal Achievement | Expected Returns | Risk Profiling |
	Financial Planning

Financial planning is the process of solving financial problems and achieving financial goals by developing and implementing a personalized plan; In order to be effective this plan must take into consideration an individual’s overall picture. It must be:

• Coordinated
• Comprehensive
• Continuous

A true financial plan does not focus one aspect or product, but instead seeks to take all areas of planning into consideration when making financial decisions. It includes,

• Cash Management
• Tax Planning
• Risk Planning
• Investment Planning
• Retirement Planning
• Estate Planning

And planning all these aspects is not enough by itself, as even if they are properly planned but not thoroughly managed it will loose its importance so proper planning and management of each of these aspects makes a complete financial planning possible.

Many times there arises a question Why Plan???
Anyone financial goals to achieve needs financial planning. Financial Planning can help to achieve both greater wealth and security. Inadequate or improper planning can be financially disastrous. Any sudden loss can wipe out accumulated wealth; insufficient savings for retirement can force a reduced lifestyle and/or postponement of retirement; and improper tax planning can result in paying more than necessary taxes.

But what are the few important reasons that stop people from planning…

• They feel they don’t have enough money to plan
• They think they are too young or old to start planning
• They are not ready to think about the bitter side of life death, accident, illness…
• They keep on Procrastinating

Financial Planning is often thought to be very expensive, but the real thing is exactly opposite NOT doing Financial Planning will eventually prove to be very expensive, the fact is financial planning is quite simple if done systematically.

STEPS TO FINANCIAL PLANNING:

• Identify the goals and objectives
• Gather necessary datas:
• Analyse the present situation
• Develop strategies to achieve goals
• Implement the strategies
• Review and Revise periodically

Step 1: Here you need to clearly define your financial dreams, goals and develop a vision of your financial future.

Step 2: Here a proper review of documents like bank statement, tax returns, insurance policies.

Step 3: Here we have to analyse as to what do we have in our kitty today, what is our financial condition today.

Step 4: Here in this stage a personal plan is prepared which can pave a path for achieving desired goals. This is prepared by carefully analyzing person’s specific situation.

Step 5: After formulation of the personal plan steps are taken to implement it, which can serve as a financial solution to meet the needs.

Step 6: Now once the strategy is into action, it is needed that we review it at regular intervals, so that we can know that are we moving in the right direction and if deviations are found then it should be revised as necessary.

Financial Planning can be done keeping various criteria as the base but for getting most comprehensive results we need to concentrate on 3 things i.e. Goal Achievement, Expected Returns and Risk Profile of the individual.