1.What is Financial Planning and How does it work?
- Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child’s higher education or planning for retirement.
- The Financial Planning Process consists of 3 steps.
– Step1: Constructing your cash flow analysis taking into account your income, expenses, assets and liabilities.
– Step 2: Constructing your risk profile and asset allocation model.
– Step 3: Constructing your goal plan.
Using these 3 steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
2.What some things which one must never do, if one wants to meet financial goals?
- Do not buy any stock or security based on market rumors and tips from any one, just for the greed of getting rich quickly.
- Do not invest any money in any product that promises you very high returns to make you rich overnight. Remember, financial goal planning is a long process. Have patience and stick to your asset allocation plan. No body can get rich overnight (unless the person wins a lottery or gets an inheritance)
- Make your investment decisions, only after consulting your financial planner and after following the 3 steps given above
3.What is the next thing I should do to begin financial planning?
- We at www.investmentz.com provide financial planning services to our customers. Make your financial plan based on the 3 steps process given above.
All the best for achieving goals!!
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.