Financial Planning Advisory | Need And Analysis

A country like India. Where recent past has experienced a very fast economic growth rate and income level of the people has gone up. Where financial investment industry is wooing investors with different financial products. Investors are really confused to choose among? What is the best? Which category and sector? How much? The straightforward answer is the best Financial Advisory Services offered either by individuals / by institutions completely dedicated to offer such services.


If you are keen to know about the facts, how important it’s to avail a Financial Advisory Service, as the best solution for your happy financial status and as well as life ahead, read this article and comment!

What Is Financial Planning /Advisory

Without proper management of current resources, there will not be any surety about the fulfillment of life’s goals /achievements. People from different walks of life, with divergent income levels may have distinctive goals in life. But, the method of achieving those goals is the same. That’s “The proper management of available funds”. So, financial planning is simply defined as follows.

Financial Planning is the process of achieving life’s possible goals, through the proper management of one’s Personal Finances and Available Resources.

Why Do People Need Financial Planning Advisory Services

Numerous Financial Products. Their complexity. Irrespective of abundant available information, there are chances that people may go astray from, what they actually need to choose. That’s where, a financial planner actually plays an active role to articulate the necessary plan to go with. With his /her service, it’s easy to set up goals and draw the plan to reach those goals within the set time frame.

There are numerous factors that can be addressed easily with the help of Financial Planning advisory Service. By addressing these factors, one can not only can reach the life’s goals easily, but also can lead a happy tension free  life with no further financial obligatory tasks.  Because a well defined Financial Plan will have all the safety built-in -features, that will efficiently address, all the life’s goals and financial obligations.

READ  The Best Mutual Funds | How To Select

Let’s have a look at all those factors, that a well defined Financial Plan can address.


The best investment that can efficiently deal with inflation is equity. An alternate option is Equity Oriented Mutual Fund Schemes. A well defined Financial Plan includes Equity Component. The percentage varies among individuals. And, it depends on their risk taking capacity and the set goals.


A good Financial Planner always makes sure that, all his /her clients take the benefits of Tax Reliefs, provided by the Government from time to time. It is always necessary to take all those advantages of Tax Benefits, to reduce the tax burden and unnecessary cash outflow.

Increase In Income Levels And Hence The Savings

India is one of the fastest developing countries of the world. In such countries, it’s common to see a high economic growth rate. Income levels of citizens of those countries normally rise at a fast pace.  Being the part of such fast growing economies, people with high income levels have high saving levels too. That too, unlike their counterparts, like developed European Countries, Asians, especially we Indians believe in savings. Believe that savings will ensure their future prosperity.

Financial Planning helps to park those savings in avenues, that drive them to meet their highest aspirations and goals.

Higher Aspirations And Goals

People with High income levels naturally thrive to have highest aspirations and goals in life. It’s quite natural. Whether it’s, buying a home in the up-market locality at an early age /dreaming a fantastic future higher education for the children /happy holiday vacation /the happy retirement. People due to higher income levels, would like to achieve as early as possible.

READ  Syncom Formulations | Why Do It's Damping Down Investor Confidence

Without proper financial planning, it’s very difficult to meet all of their goals. Hence, a proper financial plan which considers all these aspirations is compulsory to develop.

Problems That Arise Due To Small Family Stucture

Due to the increasing number of small family structures, the importance of a well addressed financial planning  assumed the utmost importance to stay independent.

Olden days were different. Joint families with certain net worth were always supportive to all its members. Head of the family was acting the role of a fund manager. He /She was always there, to support their individual family members, in their bad financial situations.

So, there is a need to plan for such support, through a proper Financial Planning.


Attractive low interest rates proposed by different financial institutions, including banks, is making the people to borrow more. Sometimes more than their capacity. This anyhow, finally leads to the negative cash flow, which is a threat to anybody’s financial health, which indirectly impacts the physical health too.

One of the most important aspects, that needs to be explained to the borrowers is ‘Leveraging the low interest rates’. A good financial planning explains and avoids such negative cash flow problems successfully.

Confusion Due To Numerous Financial Products

Numerous and similar. Chances are great too misled by such attractive return promises. Need to distinguish from the individuals risk, age and need base point of view. One small financial mistake may lead to havoc.

A professional financial planner chooses the best for you, keeping in mind the aspirations as well as the risk profile.

Product Complexity

A recent revolution in the financial services industry came up with a number of complex financial products. Difficult to understand whether it matches the individual’s need or not. And, how the other market conditions impact those products indirectly, is another matter of big concern to understand.

READ  FED Rate Hike And Its Effect on Global Markets

Difficult to dig around all these matters, in these ‘No Time To The Self Crae’ days. Simple to transfer this workaround to the expert.

Lack Of Social Security

Simply to say – ‘Financial obligations are unlimited’. Irrespective of financial position, status in the society, age, caste, creed or gender, every individual has his /her particular need for finance. Whether it’s for the self or the dependants. Financial cushion /flow is must for everybody’s life.

Those days of ‘I will receive my pension, no tension after retirement’ have gone. Without proper financial planning for the self and the family, all the stages of life become a ship without a rudder.

One of the main objectives of Financial Planning is that of Social Security. No other way to ensure such a peaceful social security in terms of financial security.

Longer Life Expectancy

Thanks to the revolutionary developments in medical field. Life expectancy has been tremendously improved from an average 60 years to 80  years today. Without proper Medical Insurance Planning and Pension planning, and Retirement Planning, it’s very difficult to lead the post retirement life of 20 years.

Worse will be the condition if one quits the job earlier and that too without proper financial planning.

When it is obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps

– By Confucius (An influential Chinese Philosopher, 551 B.C)



Certified Financial Planner And Stock Analyst

1 Reply to “Financial Planning Advisory | Need And Analysis”

%d bloggers like this: