Financial planning is often referred to as budgeting or saving for the purpose of ensuring future financial security. In simple terms, a financial strategy is a detailed analysis of an individual’s present pay structure and future financial position by taking into consideration present and projected factors such as inflation, unemployment rates, living costs, balance sheet, etc., in order to assess future income, expenditure and retirement goals. A financial plan can also be described as a set of financial strategies that an individual intends to follow over a given period of time. The various strategies include savings for the future, retirement and investment.
In most cases, financial advisors will only offer their clients a financial plan on the basis of their commission. However, there are many financial planning advisors who work independently and without any agency links, offering their clients financial planning advice as well as providing a customized financial plan that fits each client’s needs. A good way to start looking for an independent financial advisor is by searching the internet, as there are many sites that allow you to browse the credentials of financial advisors as well as the services they provide. You can also get to know more about these advisors by asking friends or relatives for recommendations.
Another important thing that must be kept in mind when looking for a financial advisor is to look out for those who are not connected to any specific bank or financial institution and use this as a basis for choosing the best advisor. It is better to choose someone who has extensive experience in financial planning, as they will have strong knowledge about all the aspects of your finances, and will be able to help you achieve your long term financial goals. Ideally, an advisor with a four year college degree specializing in finance can also give sound financial advice. They will be able to help you set up a budget, set aside savings for emergencies, set aside money for a rainy day, take care of insurance costs and many other aspects of your finances.