Steps to start financial planning

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Having ample savings is the need of the hour as emergencies can arise any time. To make sure that you are financially sound, you should start financial planning at an early age. Some facts that you should know are as follows.

Know about your financial planner

For instance a person is your financial planner. You need to know their investment approach, philosophy, and the steps that they will take to help you meet your goals. In the starting of the meeting, you should ask them to show their investment policy statement. Also, how will they handle your money, their strategy, and also their work approach on how they meet your financial goals.

Put out questions

After knowing your financial planner, you should ask some questions. They are working for you, so it is your duty to ask questions such as:

  • Can you show your educational background, licenses, and experience?
  • What type of services do you offer?
  • What investments do you advise and why?

Give answer of a financial planning questionnaire

Your financial planner provides you a questionnaire to fill your current financial position and also your individual financial planning goals. You also need to give answer of your current income, assets, liabilities, and expenses.

Know your financial goals

The most important financial planning step is to know your financial goals and personal dreams and hopes. You should discuss with your financial planner your short-term goals like buying a house, and also your long term goals such as your retirement planning or your child’s education.

Determine your risk tolerance

You may determine your risk tolerance in the questionnaire. So, you need to talk with your financial planner to analyze your investments. The risk tolerance depends on how much risk you can take in your investment portfolio. With the help of your risk tolerance, age, and goals, your financial planner will design your financial investments for your plan.


About Emma

Emma Lewis: Emma, a digital nomad and world explorer, shares her travel experiences, tips for budget travel, and guides to various destinations. Her blog offers a unique perspective on experiencing the world.