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Practical Objectives Of Financial Planning

In my early teen years, among the most memorable merit badges I obtained on my path toward Eagle Scout was Personal Management. Little did I realize at that time that I would end up as a financial planner.

Now after a decade that has produced dozens of radio shows, hundreds of public speaking engagements, and more than 1 thousand client meetings, I've lost track of how many times I've come across individuals (including myself) committing the same financial blunders.

As one cannot predict the future, so it would be an better idea if a person prepared for it to fulfill his/her aim at each stage of life. And these aims will only be achieved only if one has done the financial planning. It is a systematic approach where a financial planner or adviser maximizes customer's existing financial resources by using the appropriate financial tools and investment vehicles to best achieve his financial goals and objectives.

Here we're in February. A recurrent theme arises around this time each year. January brings new resolutions. People are excited for change. Decisions are made. Goals are set. Plans are designed. And then life happens. Change becomes more difficult than imagined. Decisions are forgotten. Goals melt. Plans are destroyed. And it's only February.

It is around this time of year that I will often host a financial workshop entitled' Financial Blunders, Financial Resolutions. ' Now is the time when people need the encouragement to make some more realistic resolutions. So I address three of the more common financial blunders I've seen in my client interactions through the years.

There are many elements to a financial plan (Cashflow, Debt Management, Investment Asset Allocation, Tax Planning, Estate Planning, etc.). And there are even more financial products to aid in the fulfillment of that plan. Therefore it is essential that we begin as soon as possible to draw up a written plan utilizing financial products that match our risk tolerance, objectives and time horizon to when we expect our financial house to be complete.

Financial planning in India is the key to most of our finance related issues. In order to obtain the maximum returns on your investment, it is essential to select the right investment plan to safeguard your future. Although there is a multitude of financial plans available in India, but sometimes people don't know the right plan for them. In such situations there exists a financial adviser who'll do the needful and help you and your family in selecting the right investment plan. Some of the investment plans that are available are wealth management, health insurance, child education plans, retirement plans India etc.

Most of the people usually go for retirement plans India as people earn all their lives in order to protect their future after retirement. Keeping this in mind, many financial institutions in India provide retirement plans suiting every individual's needs and budget, as investment requires putting in your money and therefore one should always go in for the best plan available. Also these decisions are taken not every day and therefore one must be extremely careful while exercising their discretion.

Financial advisor is the person in charge of giving information about all the investment plans available in the marketplace and the returns that are received on them. But one must keep certain things in mind before choosing a financial advisor as he's the person who'll assist you in achieving your long-term fiscal objectives. One should have detailed information regarding the experience of the advisor and his certificate as well as educational qualifications. He should be able to provide you proper understanding of the various plans based on your needs and budget. The advisor, it's like a friend who helps you managing your hard earned money which guarantees protection after your retirement and lets you do all that you have always dreamt of. Financial planning is a major tool which when used effectively can be the best approach for managing your money during a period of time.

Have you ever been grocery shopping when you are hungry? And even worse, when you do not have a list? What ends up in the cart? It's always a can of powdered donuts, for me.

In the financial world that's what we call 'buying on emotion. ' We are all financially hungry. As we go through life, people will tell us to 'invest in the 401 (k)' or 'buy this mutual fund. ' If we do not have our list (written financial plan) with us, we end up tossing a pile of financial products into our financial shopping cart, without realizing why we are buying this or that. When we let our emotions decide, we tend to make less efficient financial decisions.

When faced with an investment opportunity, ask yourself what purpose does this financial product fill? Does it fit into the blueprint for my financial dream home? If not, suppress your emotions and use logic to turn it away.

Don't trick yourself into thinking that you will set aside next Saturday to spend all day getting your finances in order. Simply dedicate 15 to 30 minutes each week to begin getting organized. Small changes on a consistent basis will yield much greater results than large but infrequent changes.

This article is for informational purposes only and isn't intended as specific financial advice or an endorsement of a particular company or product, nor does it constitute an offer to sell, or solicitation of an offer to buy product, any security, or financial strategy referenced herein.

Don't be the product, buy the product!