What is Financial Planning?

As per the CFP Board of Standards "Financial Planning is the process of meeting life goals through the proper management of finances." Life goals can include buying a home,saving for your child's education/Marriage or planning for retirement.

What are the benefits of Financial Planning?

Following are the benefits of financial planning

1. Improves Cash Flow.
2. Organizes Finances.
3. Better risk management.
4. Enables setting financial goals like childs education, marriage, Retirement, etc.
5. Enables selecting the right investments as per goals and risk profile.
6. Better investment performance than unplanned investments.
7. Improves post tax returns.
8. Inculcates discipline and provides focus in managing finances.
9. Awareness on all financial matters including insurance, investments, taxation, etc.
10. Alignment of financial resources as per your life goals.

Can a client do his own financial planning?

Yes, but only if he has the time to allocate for this process. A complete understanding of financial matters is also necessary which should be left to the expert. Each person's requirements and financial situations are unique hence standard written down processes might not help all as plans need to be customized as per the requirements which only a financial expert can decipher and advice. 

What are the steps of Financial Planning ?

The financial planning is a six-step process -

1. Establishing relationship with the client.

2. Understanding requirements (Data Gathering)

3. Analysing the financial status of the customer.

4. Recommendation based on the requirements.

5. Implementation of the steps suggested.

6. Review, re-alignment and revision of the plan.

Will i get specific advice on the stocks to invest?

No, CFPs are not authorized to provide specific stock related advise. The client will only be advised on the avenues of investment, like Mutual Funds, Fixed Deposits etc, without providing details on which fund or FDs to invest. 

Is the advise provided by the CFP is valid throughout the client's life?

The advice provided by the CFP is applicable as per the client's current life stage, life cycle, assets, cash flow, liabilities, life goals etc. All these things keep changing with time. It is advisable to visit the CFP either once a year on in case of any major change in his finance's or life cycle. 

What is the difference between the Advanced and Pro plan?

The advice given by the CFP in the Pro plan will be more personalized as the CFP will be able to judge better the risk profile and risk appetite of the customer through personal meet.

Is it enough for me to go for the Basic Plan?

The basic plan is recommended for the user who has a basic idea on the financial planning. This will help him to interpret the report in a better way.

Will the steps recommended to the clients will be reviewed by CFP after some time?

The recommendations provided are valid for a period of one year, it will be reviewed by the CFP once in 6 months for course correction. The user can also get in touch with the CFPs before 6 month in case of any changes in his financial situation.

Can i engage with a CFP to understand the recommendations provided to me through a Basic plan?

No. The user does not have this option in the basic plan. Though the recommendations provided are very simple and can be understood and followed by anyone.

Will i get a refund if i am not satisfied with the financial advise provided to me?

No, the fees will not be refunded.