A detailed guide on Financial planning for Individuals and Corporates
What is a financial plan?
A financial plan is also known as a capital plan where an evaluation of an individual's current money situation and upcoming financial state along with a list of short term and long term goals to be achieved is prepared. All these detailed evaluations to be documented to predict his/her future asset's value, income, withdrawal scheme, etc., We can also say that financial planning is the combination of Financial Resources (FR) and Financial Techniques (FT).
Why financial planning is important?
The purpose of financial planning or investing money may come from multiple reasons. It may be your children's education, business development, daughter marriage expense, etc., But investing money or doing financial planning is essential for business too. A best financial planning for a business must include the following metrics like investments and debts details, insurance, savings, and cash flow, etc., By setting a financial plan or goals for your future either by short term or long term strategies, you will be able to achieve that and the steps you take now will lead to goal completion. You will keep on track to meet your goals. A financial plan also includes an investment plan, retirement plan, tax plan, estate planning, etc.,
Who is a financial planner or financial advisor?
A financial planner or financial advisor is a professional or industry expert who can prepare financial plans for you. CFP is the acronym of Certified Financial Planner which is a certification provided by the Financial Planning Standards Board (FPSB). One who pursues financial planning as a profession/occupation can approach CFP certification. A qualified investment expert can help both individuals as well as corporate companies to meet their long term financial goals. A best financial planner will do a thorough analysis of your current financial status and future goal and make a plan for you.
What are the different kinds of financial planning services/investments in India?
The following are the main 7 components of financial planning.
- Insurance Planning (Life and health insurance)
- Cash Flow Planning
- Investment Planning
- Tax Planning ( tax deductions, tax exemptions, tax savings schemes)
Deduction under Sec 80C
Deduction under Sec 80D
Deduction under Sec 80CCG
Deduction under Sec (24)B
- Real Estate Planning
- Children’s Future Planning
- Retirement Planning
In another way, there are 3 types of financial plans available. They are short term financial plan (Time period: Max 1 year), medium-term financial plan (Time period: 1 to 5 years), long term financial plan (Time period: More than 5 years).
How Sulekha.com help you in financial planning?
Sulekha.com provides you Background verified, Govt approved certified financial planners in your dashboard where you can compare their ratings, reviews, portfolio, the experience of the financial advisors. A good financial plan will help you succeed in your life and achieve your goal. Financial plans are prepared by promoters/entrepreneurs. Promoters through sulekha.com will do their analysis and execution part well while preparing the financial plan. because they know well that a wrong financial plan will not satisfy your meets and lead to under capitalization or over-capitalization in which an individual or a corporate cant tackle the situation.
Checklist for the best financial advisor before hiring them?
Below things are some of the important points to note while looking for a financial planner near your area.
- He should have good judgment and skill.
- He should not mislead the clients
- He should pay attention to your intention, the goal of yours instead of taking you to his plan
2) Give unbiased advice
A personal financial planner should give their objective advice. Because some CFP may try to sell you their financial products. The financial advisors should analyze the document clearly and give investment ideas based on your financial status towards the future goal.
3) Transparent Manner
Transparency is one of the essential behavior that you should expect from a financial advisor. Because you are going to invest the money based on the ideas from the financial expert. You can even ask your financial planner about their service charge or commission to be generated through the financial plans. So you will come what is the actual charges of a financial planner?
Note: It's better to get if they provide an invoice for the fees you are going to pay.
Years of experience is very essential when it comes to financial matters. Because an experienced financial advisor can guide you and take you through a better plan since they have come across multiple financial services for many years. Sulekha.com provides you with Govt approved, experienced financial planners in Chennai at your doorsteps.
5) Background verification
In general, verifying the background of the financial planner from your end takes much time. But its one of the important things while consulting a financial expert for your investment plans. To avoid this situation, Sulekha.com itself doing the background check and the office address of the brokerage firms and financial consultants. It's easy for you to go through the list of financial advisers near you.
Financial consultants must have a strong skill and ability to plan better based on the current financial status of the individuals or corporates. They should pass at least the minimum requirements. Also kindly check for the professional credentials like CFP®: Certified Financial Planners™, CFA: Chartered Financial Analyst, CPA / PFS: Certified public accountants or Personal Financial Specialist. Find a financial advisor from Sulekha.com at a low fee-based financial consultant for the best financial advice, financial future. Get leading personal finance investment adviser for retirement savings, life insurance, risk tolerance, risk management, investment management, financial management by knowing asset- allocation, investment strategies, Fiduciary planning process, etc., Fill the form above and get financial adviser contact details and investment portfolio instantly to your mobile.