Questions and Answers to Financial Planning

What is Financial Planning?

This is a service offers by a licensed individual, that will assist you and guide you through any financial decisions you face. The service includes setting goals for the future, planning for your financial future, allotting your portfolio into investments as required and exploring different investment options.

Is Financial Planning really necessary?

This service will allow you to organise your financial situation, in such a manner that you plan for your future, maximize the return you are getting for your money, spread your portfolio to spread the risks, reduce tax liability and therefore achieve financial peace of mind.

Can’t I do this alone?

Some people probably could. But will you? Most professionals find it difficult to sit down and realistically think about their financial future. They claim that they do not have the time, or that there are so many options available that they don’t know where to start. Also frequent tax legislation changes make it difficult to keep abreast.

What would this plan include?

It will analyze your cash flow; assess your portfolio and debts; analyse your estate planning; make income tax projections; plan for your retirement; evaluate insurance needs; analyze educational funding; and analyze your business if applicable.

What is my function in the process?

You just need to provide the most accurate information you can. Your planner has to understand your goals, dreams and your attitude.

Are fees for Financial Planning tax deductable?

Yes, but subject to limitations.

How can I measure the worth of this service?

After the planner provides you with his recommendations, you can compare the plan’s costs, to the projected gains. Over the long term, the gains should exceed by far the cost of preparing the plan.

Will this plan make me rich?

This plan can’t make you rich quickly. What is can do is help you save more of the money you earn, and make your funds work harder for you.

Reference: http://www.dmozonline.com/free-articles/eight-questions-about-financial-planning.html