Be greedy when others are fearful

Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.

- - Warren Buffett   more...

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

- - Warren Buffett   more...

Someone’s sitting in the shade today because someone planted a tree a long time ago.

- - Warren Buffett   more...

Financial Planning

Financial Planning is about designing a road map to help you achieve your long and short term goals, taking into account your current/ future, expanses/income, assets/liabilities. Often people misunderstood it as only about making Fresh Investments, but there is much more involved in this. It is about:

  • Giving direction to your current expenditure in a better way to get more fruitful results.
  • Making you understand where you are investing wrong.
  • Making you aware about your risk profile.
  • Helping you to fix your long and short term goals.
  • Dependents feel more secure about their future.
  • Making you feel more relaxed in terms of your finances, future and near term goals.

Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement. The Financial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

Financial Planning Process

  1. Establishing and defining the Client-Planner relationship.

    The Financial Planner should clearly explain or document the services to be provided to you and define both his and your responsibilities. The Planner should explain fully how he will be paid and by whom. The Planner should also disclose any restrictions on his ability to give unbiased advice and disclose any conflicts of interests. You and the Planner should agree on how long the professional relationship should last and how decisions will be made.

  2. Gathering client data, including goals.

    The Financial Planner should ask for information about your financial situation. You and planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The Financial Planner should gather all the necessary documents before giving you the advice you need.

  3. Analyzing and evaluating your financial status.

    The Financial Planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you may have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.

  4. Developing and presenting Financial Planning recommendations and/or alternatives.

    The Financial Planner should offer Financial Planning recommendations that address your goals, based on the information provided by you. The Planner should go over the recommendations with you to help you understand them so that you make informed decisions. The Planner should also listen to your concerns and revise the recommendations as appropriate.

  5. Implementing the Financial Planning recommendations.

    You and the Planner should agree on how the recommendations will be carried out. The Planner may carry out the recommendations or serve as your 'coach', coordinating the whole process with you and other professionals such as solicitors or stockbrokers.

  6. Monitoring the Financial Planning recommendations.

    You and the Planner should agree on who will monitor your progress towards your goals. If the Planner is in charge of the process, she should report to you personally to review your situation and adjust the recommendations, if needed, as your life changes.