Effective Financial Planning in detail


Effective financial planningEffective Financial planning in detail is the need of the time. Effective financial planning happens when you ensure that your short term & long term financial goals are achieved in an effective & best possible manner. In this article we present to you three stages of an effective planning process. Let’s begin with the steps for Effective Financial Planning in detail.

Effective Financial planning in detail

Information gathering

When you meet your financial adviser for the first time, he will ask you certain questions. Your answers to your financial adviser’s questions will help him to know your financial goals better so that he can give the best solution to you. Your financial adviser will consider your present situation including your assets & liabilities, expenses & income. Your financial adviser will also decide on your risk tolerance. You risk tolerance is your capacity to undertake or tolerate risk. You should also ask any of your concerns and clarify them with your financial adviser. Now let’s understand the second stage of effective financial planning.

Analysis and recommendation

In this stage, your financial adviser will examine the information in detail that he receives from you. After he is finished with careful analyzing, he will evaluate various options in front of you. He will then recommend to you a strategy which will help you to meet your financial goals in an efficient manner. After this your financial adviser will meet you again.

Whenever you discuss your financial strategy with your financial adviser, you should clarify even the smallest of your concerns. It’s important that you understand each and every aspect of your financial plan before you sign anything. Your adviser must explain

to you in detail every aspect of the plan. If you arn’t satisfied with certain aspect of the plan, immediately clarify your concerns with the financial adviser. You may also choose to modify certain aspects of your plan as per your convenience. Once you are content with your financial strategy or plan your financial adviser will present you with certain forms to complete & sign. Now let’s have a look at the third & final stage of an effective financial planning process. financial planning

Implementation and Review

This is the final stage which involves implementation & review. Once you are satisfied with your plan, it should be followed by appropriate implementation program. This may require you to open a new account, consolidate your superannuation accounts & other assets, taking insurance & things like that. Y

Hence, now you know the three stages involved in effective financial planning which helps you to achieve your financial goals both short term & long term.our financial adviser will guide you at every stage so that the financial plan gets implemented with minimum hassles. It’s very important to regularly review your plan with your adviser. This ensures that your plan is implemented in the right way to achieve your financial goals which may change with time.


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