Financial planning: How to approach


Having a financial goal is not enough, you need to plan your investments so that you can reach the goal that you have set for yourself. However, it is easier said than done and you need expertise, knowledge, and experience to know which move to make. That is the reason you must have an experienced advisor by your side who can guide you every step of the way and who is also tech-savvy and has knowledge of the mutual fund distributor apps. Financial planning involves certain steps and the more you approach it methodically the better for you.


Financial planning: Things to know


  • The first step in your financial planning would be the most vital one. You have to assess the current financial situation you are in. This means you need to assess your income, your current investments both long-term and short-term, and find out how these investments would fit into the plan that you want to come up with. You also need to include the liabilities that you have as well as your assets. When you take everything into account you get a clear picture of what your current financial situation is and where do you go from here and how. The advisor would help you here.
  • The next thing the advisor must do is to find out what is your risk appetite. The market would undergo volatile conditions and your investments might come under risk, so how much risk you are willing to take is important and this will help the advisor come up with the right strategy. Coupled with the knowledge of the best wealth management software and the best mutual fund app for distributors he could chalk out the right plan.
  • In the next step, the advisor should help you find the ideal products that would fit your goal nicely. The extensive knowledge regarding the financial products would allow the advisor to come up with the right product mix. He should also consider introducing diversity, to maximize profit and keeping the risk factor lower.
  • The advisor would keep on monitoring the investments you have made and would also keep on measuring how your portfolio is doing and if there is any need for a change and if there is a need then how to implement that.

Financial planning takes a lot of expertise, patience, and a nuanced approach that only an advisor can offer. So, do not take the DIY approach and rely on an advisor.