FINANCIAL PLANNING AND ITS REQUIREMENT
Is financial planning is required to everyone? The answer is definitely 'yes'! Financial planning is very very important for every one who has income. Let us find out some reasons for this which will enable us to understand the importance of financial planning:
WEALTH CREATION: Only traditional rich families from business world used to generate good amount of wealth. But nowadays, many individuals are earning in good amounts and this creation wealth reallly requires planning, so that their money or wealth can be secured and used in a systematic way through the planning.
UNCERTAINTIES: After the recession of the economies, worldwide, life has become so uncertain. Yesterdays white collared software professional is now on road. So what happens in life, we really do not know because at any time, future is quite a mistery and for this one need to plan his financial requirements. Any unforeseen event can be covered through insurance for example.
MARKET LINKED PRODUCTS: Today, including insurance, many products are related to markets and these products can be monitored by financial planning only. Individually an investor can not make a choice in selecting a right product for him, and in this connection, a good advisor on financial planning is definitely required.
SHORTAGE OF TIME: Many rich people who are at high positions are really poor investors and poor financial planners. So they need advise from financial advisers. For them the financial planning is really required. Strategic asset allocation is suggested by the advisers to secure the earnings as well as increasing the wealth.
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