Managing your finances and planning your expenditure and investments so that your future
becomes secure can be called as financial planning. Financial planning can be done for personal life
as well as for businesses. This whole activity of planning and managing your finances is called as
financial planning. A certified professional who will help you to manage and plan your finances and
investments so that you can get financial safety is called a financial planner.
In India there is myth that financial planners are only hired by the rich class or the millionaires, but
today the times are changing, now even a common man can hire a financial planner so that he can
manage his finances in the most appropriate and efficient way. Financial planner charge a good sum
of money as their fees but this money can be called as an investment, we should pay this fee so that
we can eliminate all the errors which we personally make while managing our money, a small
mistake can break your whole empire. Going into further detail let us see the top 10 reasons why
you should hire a financial planner and see what do financial advisors do?
1. They assess your financial status.
The first and foremost thing that a professional financial planner would do is to assess your current
financial status by examining your assets, the current insurance policies, all tax returns which you
pay, all the investments and financial instruments which you hold and lastly to check the debts
which you owe to others. After a thorough assessment your financial planner should be able to tell
you the current financial status of yours. With the help of this you can plan your future and make
your future financially secure
2. They help us to plan our personal obligations
Every human has his own personal obligations which are to be fulfilled and they cannot be ignored.
For e.g. planning their kid’s education, sudden medical expenditures of their family members, to
look after their needs of the family, to look after their ill parents if any. These are some of the most
common personal obligations. Financial planners help us manage our finances in such a way that our
financial goals are not disturbed as well as our personal obligations are also fulfilled. This is where
most of the families get struck and this can be said as the main reason why they get trapped in the
cycle of debts. When you seek professional help of the financial planners they would save you from
the debt trap and make your future financially sound.
3. Helps you to set realistic financial goals.
Majority of the people would disagree with this point, when we set our financial goals all by
ourselves we tend to set an unrealistic goal which is impossible to achieve or we would set a goal
which can be easily achieved. In the earlier case we would be annoyed and disturbed if we fail to
achieve this would affect our life. In the later we achieve our goal well in advance and after that we
become lethargic and become less productive. A certified financial planner would help you to set a
realistic financial goal which is based on your current financial status. Apart from this they will also
guide you to achieve this goal.
4. Help you to create a financial plan.
In the previous point we saw that a professional financial planner would help you to set a realistic
financial goal which would be the best for you according to your current financial status and future
potentials. Now the planner would also help you to create a solid plan by which you can easily
achieve your financial goal. The plan would consist of a detailed plan on how to invest, where to
invest and when to invest. With the help of professional financial planner you can make a financially
secure future.
5. Tax Planning.
Majority of the people who choose to take the help of financial planners are liable to pay taxes. As a
common man we wouldn’t know how to get benefitted while paying the taxes. There are numerous
schemes and plan which would be very beneficial for the tax saving, these plans are called tax saving
schemes. The plan which suits you the best would be suggested by your financial planner. This
would help you to save more money without cheating the government.
6. Helps you to plan your investments.
Financial planner shows their professionalism when planning our investments. Looking at our
current financial position they create a financial goal and lay a financial plan to achieve that goal.
They also suggest you various investing schemes from government bonds, equities, real-estate, gold
etc. They would also suggest the right time to invest so that you can get the maximum benefit. This
would also include some heavy investments which get you the maximum benefit in the future.
7. Helps you to manage your investments.
As discussed earlier they would plan our investment, also they would be managing our investments.
They would advice on when to buy and when to sell. If there is some trouble with our investment
they would intimate to get it fixed. As an individual it is very difficult to manage our professional and
personal life it would be even more difficult to manage our investments. So hiring a financial planner
would allow us to concentrate on more important matters in our life.
8. They provide professional guidance.
When you hire any professional you expect that level of service from them. They offer the services in
such a way that a common man could not be able to do. Same, when you hire a financial planner he
will give you ideas which would be very helpful to you. Such ideas would be thought of by a common
man. They advise you to invest in such policies where you can get the maximum returns and those
policies would be unaware to you. This is what makes them a professional.
9. Retirement planning.
A person is financially secure until he is debt free and he is earning, what after your 60 something?
Financial planners would help you to choose the best retirement plan which would make you secure
after your retirement. The planned investment would fetch you income now so that you need not
rely on anybody for your survival. They help you to make your retired life financially secured.
10. Help you to be debt free.
Being debt free which means you do not owe a single penny to anyone. This state of living is a rare
sight these days. Majority of the families face serious problems due to debts. Hiring a financial
planner would make you debt free because of the professional services they provide.
Conclusion
To conclude we would suggest you to hire a financial planner to get secured financially and to lea
financial secured life. The fees charged by the financial planner are not that low, this fee cannot be
afforded by everyone. If you can afford the fees and still don’t hire a financial planner and if you look
to save money then it would land you in some serious trouble, it’s better to pay the financial
planners fees rather than to go broke.