A financial planner is an expert who take a good look on all of your earnings, investments and long term financial commitments to see what your financial condition is going to be when you retire.
In addition to analyzing your financial situation, the financial planner would also help you make effective plans of saving money and having more to spend after retirement, or whenever you need to. All is the financial planners have their own unique experience, and while you can act as your own financial planner if you have some basic knowledge of finances, we recommend hiring an expert so you get the best advise possible.
Financial planning typically involves two main steps. One is determining shirt and ling term financial goals, and second is devising a proper plan to achieve those goals in the long run.
An experienced and properly skilled financial planner would gather all the important financial information about you, and make future projections and accessing how long it would take you to achieve the financial goals you’ve set. The time it’d take you to achieve a goal would depend on the projected inflation rate, your investments and spending habits.
What a Financial Planner Does
If you’re planning on getting financial advice from an experienced financial planner, than here is what you can expect from him.
- What needs to be corrected in your spending habits.
- How much you’d need to save to realize your financial goals.
- What accounts would be best for you to save for retirement.
- What is the best way to repay the debt you currently have.
- Do you need any type of insurance? If yes, then what type would be the best for you.
- Creating an emergency fund to address any financial emergencies.