Q1. What is financial planning?

Ans. Financial planning is the process of managing your funds to achieve your desired goals in the required time frame. It involves analyzing your existing financial position, expected future cash flows, inflation and identified financial objectives to develop a comprehensive financial planning roadmap. This is aimed at making available the right amounts of funds at the right time in the future.

Q2.Why should I make a financial plan?

Ans. Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you save adequately to finance your child’s higher education or it may provide enough for a comfortable retirement. You can also adapt more easily to life changes and feel more secure that your goals are on track.

Q3. What are the types of needs that I plan for?

Ans. There are various kinds of needs, some of which are listed below -:

  • Retirement
  • Child’s Education
  • Child’s Marriage
  • Asset purchase
  • Insurance
  • Investment
  • Tax planning

Q4. Who is a financial planner?

Ans. A financial planner is someone who uses the financial planning process to help you determine how to meet your life goals. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs. He or she normally possesses detailed knowledge of a wide range of financial planning tools and products, but his major role is to help clients choose the best products for each need. The planner can take a ‘big picture’ view of your financial situation and make financial planning recommendations that are right for you.

Q5.What should I look for in a financial planner?

Ans. A financial planner works for you. His or her loyalty should be to the client, not the product(s) he is trying to sell. The financial planner should be in a position to provide you with unbiased advice and recommend products that match your needs and are the best performing ones available. Look for any affiliations of the financial planner to any product manufacturer. Unless the financial planner is truly independent, (s)he will not be able to give you objective advice.

Q6. What is the duration of a financial plan?

Ans. The duration of a financial plan depends on the goals that it sets out to achieve. It can cover Short term, medium term and long term goals.

  • Short term goals are normally targeted in a 1 – 3 year framework, for example a vacation abroad
  • Medium term goals fit into a 3-5 year horizon, for example, buying a home

Long term goals are achieved in a period of 5 years or more, for example retirement planning.

Q7. Where can I invest my savings to get the desired returns?

Ans. Once you have determined how much you wish to invest, you need to decide where to invest. There are various investment options available depending on your risk – return profile. The various products available are:

  • Mutual fund schemes
  • Equities
  • Bank deposits
  • Bonds
  • Insurance Plans

Q8.Will my personal information be kept confidential?

Ans. Absolutely.  It is our policy not to discuss our clients or their business with anyone, including those that have referred you to us. We do not sell or share our client list or information with any outside entities unless required by law. Even after you may no longer be a client, we uphold this policy.

Q9. How can I get started or what is the process, if I get enrolled for financial planning?

Ans. You need to meet our Financial Planner. He/she will let you know about our services and scope of Financial Planning. He/she will explain you about the steps of Financial Planning. If you agree then he will collect Financial Planning Fees and start his/her work. Following are steps of Financial Planning process:-

(i)First Appointment –

a) Assess your current financial health & set realistic financial and personal goals-In the first appointment your financial planner, during this session will find out what your financial objectives are and what type of advice – you’ll need. For the same the planner will complete the Data Gathering Form.

  1. b) Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financialstrengths -Once Elite Financial Planning has a clear picture of your situation, and a good idea of your attitude to investment risk, security and differenttypes of investments, we develop a detailed written financial plan.
  2. b) Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financialstrengths -Once Elite Financial Planning has a clear picture of your situation, and a good idea of your attitude to investment risk, security and differenttypes of investments, we develop a detailed written financial plan.
  1. b) Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financialstrengths -Once Elite Financial Planning has a clear picture of your situation, and a good idea of your attitude to investment risk, security and differenttypes of investments, we develop a detailed written financial plan.

b) Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financialstrengths

Once Elite Financial Planning has a clear picture of your situation, and a good idea of your attitude to investment risk, security and differenttypes of investments, we develop a detailed written financial plan.

All advice is personalized and applies to your specific circumstances and can help you achieve particular financial goals through good planning and investment. We shall take into account your short-term and long-term needs, tax considerations, and the level of investment risk you can tolerate when preparing the plan.

(ii)Second Appointment

We will present and explain the financial plan to you in person. Elite Financial Planning’s goal is to ensure that you fully understand our recommendations, the benefits and potential risks. This includes answering any questions or concerns you may have, no matter how many or how small. We view this step as critical before any investments, accounts or funds are committed to any strategy.

(iii)Put your plan into action and monitor its progress –

Once you are happy with the strategy, we shall help you put it into practice. We will help you to complete the necessary forms and documents to implement the recommendations.

(iv)Stay on track to meet changing goals …changing personal circumstances …changing stages of your life …changing products…markets and tax laws –

Your financial planner can review your situation after 3 months or when your circumstances change to ensure things stay ontrack. You will also receive the Goal Analysis Report on quarterly basis which will help you to analyze to what extent you are able to meetyour financial goals.

Q10.What are the common misconceptions about financial planning?

Ans. following are the misconceptions:

One only needs to start financial planning when approaching retirement- Financial planning is a life-long process. The earlier you start, the sooner you can enjoy the benefits – and the more time you have to grow your savings.

Financial planning is just another name for investing-Financial planning is more than just investment. Rather, it is about the big picture: bringing together all aspects of personal finance to achieve your financial goals.

Once you finish your financial plan, you do not have to think about it again-Financial planning is not a one-time deal! You should revisit and review your financial plan regularly to make sure you are on the right track towards achieving your goals.

You need a lot of money to do financial planning-Everyone can benefit from financial planning, not just multi-millionaires! No matter how much income or savings you have, you can always benefit from having a clear plan for your finances.

Q11. What is the process of Financial Planning?

  • Assess your financial situation
  • Create a budget
  • Set your financial goals
  • Know your risk tolerance
  • Work out and implement a basic financial plan
  • Regularly review and adjust your financial plan

Q12. How can I plan for tomorrow when I can hardly pay for today?

Ans. Create a budget. Determine what you actually spend each month. There are fixed expenses like rent, loan repayments, etc. every month about which we can do little. The variable items such as food, clothing and entertainment are often what get away from us. Use your discretion to contain these variable expenses to start saving.

Q13.What if I don’t achieve my goals?

Ans. Financial planning is a common sense approach to managing your finances to reach your life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results.

Q14.What type of information do I have to provide?

Ans. Typically, information regarding investments held, number of dependants, income and expenditure details, savings and financial planning needs, etc. The more accurate information you give, the better the quality of advice given.

Q15. What about taxes?

Ans. It is important that financial plans are tax efficient. The financial plan should help you in minimizing your tax liability and also maximizing your after-tax returns from your investments. Some financial planners help their clients in preparing and filing their tax returns.

Q16. After a plan is developed, what next?

Ans. The best plan is useless unless it is put into action. Your financial planner will assist you completely in implementing the plan, if and when, desired by you.

Q17. How often should I update the plan?

Ans. Every individual has their own risk taking capacity. Your risk-return profile is your level of risk tolerance. A high risk venture is normally associated with high returns. You could be one of the following three risk-return profiles or somewhere in between them:

  • Conservative i.e. you take minimal risks ensuring your funds are secure. You prefer investing in post office deposit schemes, bank fixed deposits, government bonds
  • Moderate i.e. you are willing to take some risks and prefer investing in mutual fund schemes
  • Aggressive i.e. you are willing to take high risks and prefer investing in equity, commodities markets and you may even be speculating for returns.

Q19.Can my financial plan guarantee the achievement of my goals ?

Ans. Your financial plan is only gives you a road map to achieve your goals. The achievement of your goals will depend on how you implement it. There are some circumstances beyond our control such as inflation, recession, political changes, your individual circumstances etc, which might hamper the achievement of planned results.

Q20.  When should I start with my financial plan ?

Ans. The best time to start your financial plan is now. The good news is that you can achieve your financial goals, if you start early enough. Your money will get more time to work for you if you start early. Planning early increases your return possibility, chances to meet your financial goals and reduce your investment risk.

Q21. What are my responsibilities as a client?

  • To communicate clearly and honestly with your advisor so they understand your financial circumstances, investment objectives and experience.
  • To ask questions about investment matters that you do not understand.
  • Be realistic in your expectations
  • To track & monitor your investments based on your changing needs

Q22. What are my rights as financial planning client?

Ans. Your Rights as a Financial Planning Client

  • You have the right to a planner who has integrity
  • You have the right to objective advice
  • You have the right to a planner who is competent
  • You have the right to be treated fairly
  • You have the right to privacy
  • You have the right to a planner who is professional
  • You have the right to a planner who is diligent

Q23. Once my financial plan is completed, will our relationship end?

Ans. Financial Planning is a process, not an event, we offer ongoing services, periodic reviews and day-to-day consultation as requested and/or needed.

Q24. What is the mission of the Elite Wealth Advisors Ltd?

Ans. Our mission is to deliver unbiased advice, while building client loyalty through extraordinary personal service. We give you confidence for life.