Everybody has some goals in life that can be measured in monetary terms. These goals can include buying a house, saving for children’s education and marriage or planning for retirement.
Financial planners, also called financial consultants, or personal financial advisors, use their knowledge of investments, tax laws, insurance and real estate to recommend financial options to individuals based on their short-term and long-term goals.
“A career more bullish than stock-broking and healthier than medicine,” claims a recent advertisement. Discounting the exaggeration, with the Indian financial services market opening up, Financial Planning is an attractive emerging career option in the years to come.
The management of the finances of a business/organisation in order to achieve financial objectives is the basic objective of financial management.
Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to create wealth for the business, generate cash and provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested.
Financial Planning is one of the key elements of financial management.
Financial planning helps people make advance provision for financial needs that may arise in future.
In addition to education, estate and retirement planning, financial planning also addresses other areas like cash management, investment management, income tax planning, charitable planning, business planning, stock broking and debt and risk management.
You can draw parallels between the family doctor and a financial planner. The family doctor takes care of your physical health and the financial planner takes care of your financial health, ensuring orderly and systematic achievement of your financial goals.
Financial Planners often choose to establish their own financial planning practice either by themselves or together with other planners.
It has been noticed that those with a background in accountancy, law, insurance, investments, finance or taxation stand a better chance at being successful financial planners.
The annual income of financial planners depends on a variety of factors, including expertise, experience, the type and number of clients served, fees charged and even geographic location The objective of financial planning is to ensure that the right amount of money is available in the right hands at the right point of time in future to achieve the financial goals