Historically,India has been a nation of savers and hence, by and large, have been managing finances probably much better than any other race or country. Most of us plan for our children's education, their marriages and our retirement. So, though 'financial planning' - defined as the process of meeting life goals through proper management of finances - may be a relatively new term in the investment lexicon, we may have been actually practicing it since long. However, times have changed and so have lifestyles and market dynamics.Further, traditional financial instruments may no longer be enough to meet future goals as mutual fundsmove to the forefront.
The above has also resulted in financial planning now being handled by professionals like Certified Financial Planners(CFP) who are trained to help achieve an investor's financial goals. To offer a perspective on financial planning and its relevance for advisors and their clients, we have created this module which is divided into two parts -i) Financial Planning Demystified and ii) Steps in Financial Planning.
In the first video - Financial Planning Demystified - we explain how financial planning is a process and not a product. We also detail various definitions of financial planning besides explaining why one should undergo the process and the benefits therein.
In the second video - Steps in Financial Planning - we look at how the financial planning processcan be executed in 6 steps as follows -
1. Establishing Financial Goals
2. Gathering Relevant Information
3. Analyzing the Situation
4. Developing a plan for achieving the goals
5. Implementing the plan and
6. Monitoring the plan
The modules also relate to various examples so as to bring practicalities into the perspective. We have also delved into why financial planningmakes money management a lifelong process for an investor. On the same lines, it represents a great way to lay the foundation for a lifelong relationship with the client (investor)for an advisor. This also enables an advisor to move from a transactional approach to a value?added, consultative or investment advisory approach.
Do watch these videos in detail and also encourage your team to do so. As mentioned earlier, you could view this module and other interesting topics by visiting https://www.franklintempletonacademy.com/ and view different courses on your desktop, tablet or smartphone. Moreover, watch these videos in the language of your choice - English, Hindi, Tamil, Gujarati and Bengali. If you are a first time visitor, you need to undertake a simple one-time registration process using your ARN or EUIN before viewing the videos. Take the multiple choice quiz at the end of the module to help assess your understanding of the topic. You could even receive an e-certificate on successful completion of the course. Do write back to us with your feedback and suggestions on editor@templeton.com.
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