It is the process of meeting your financial goals through the proper management of your finances financial goals can include buying a home, savings for your child’s education. Planning for Your Retirement and Estate planning
We help you to work out on where you are now, what you may need in the future and what you must do to reach your goal by the process that involves gathering relevant financial information, setting financial goals, examining your current financial status and coming up with a strategy for a plan on how you can meet with your goals, and map the gap.
Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.
Here are ten powerful reasons why financial planning - with the help of The Option Point Advisory Services - will get you where you want to be.
Income: It's possible to manage income more effectively through planning. Managing income helps you understand how much money you'll need for tax payments, other monthly expenditures and savings.
Cash Flow: Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash.
Capital: An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.
Family Security: Providing for your family's financial security is an important part of the financial planning process. Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones.
Investment: A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.
Standard of Living: The savings created from good planning can prove beneficial in difficult times. For example, you can make sure there is enough insurance coverage to replace any lost income should a family bread winner become unable to work.
Financial Understanding: Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.
Assets: A nice 'cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset. The knowledge of settling or cancelling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future.
Savings: It used to be called saving for a rainy day. But sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.
Ongoing Advice: Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.
The Financial Planner should clearly explain or document the services to be provided to you and define both his and your responsibilities. The Planner should explain fully how he will be paid and by whom. The Planner should also disclose any restrictions on his ability to give unbiased advice and disclose any conflicts of interests. You and the Planner should agree on how long the professional relationship should last and how decisions will be made.2. Gathering client data, including goals.
The Financial Planner should ask for information about your financial situation. You and planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The Financial Planner should gather all the necessary documents before giving you the advice you need.3. Analyzing and evaluating your financial status.
The Financial Planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you may have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.4. Developing and presenting Financial Planning recommendations and/or alternatives.
The Financial Planner should offer Financial Planning recommendations that address your goals, based on the information provided by you. The Planner should go over the recommendations with you to help you understand them so that you make informed decisions. The Planner should also listen to your concerns and revise the recommendations as appropriate.5. Implementing the Financial Planning recommendations.
You and the Planner should agree on how the recommendations will be carried out. The Planner may carry out the recommendations or serve as your 'coach', coordinating the whole process with you and other professionals such as solicitors or stockbrokers.6. Monitoring the Financial Planning recommendations.
You and the Planner should agree on who will monitor your progress towards your goals. If the Planner is in charge of the process, she should report to you personally to review your situation and adjust the recommendations, if needed, as your life changes.
Financial planning provides direction and meaning to financial decisions. It allows the client to understand how each financial decision they make affects other areas of their finances.
For eg. Buying a particular investment product might help them pay off their mortgage faster or it might delay the retirement significantly. By viewing each financial decision as part of the whole, the client can consider its short and long term effects on their life goals. The client can also adapt more easily to life changes and feel more secure that their goals are on track.
You want to engage the services of a qualified professional and ensure quality advice.
You save money when you avoid making wrong investment decisions.
Financial plan precedes any advice on products and to that extent, is completely unbiased. You put your trust in the hands of an expert and your mind at ease.