Choosing a Financial Planner - Finding the Best

A financial planner is not a luxury; he is needed by anyone who has property of any size. Having money or prospects of money comes with the responsibility to implement a sound financial plan. In the contemporary way of doing things, that is the cue to choosing a financial planner. The planner may be engaged for personal finances or a business plan. Though a financial planner may offer some financial advice, his main goal would be to compile an official financial plan. He deals with the details while a financial advisor helps to zero in on the best financial ideas. The financial planner should therefore be approached with the ideas already in place to act on them with his accounting skills.

Financial plans are laid out to meet certain criteria that are set in the first discussion with the client. They must stipulate deadlines and targets based on sound financial projections. There can be a great variety of business cases for the same resources. The goals and vision of the financial plan are primarily determined by the intentions of the client but also by the expertise at hand and combined experience of the concerned.

The above drives the point that a starter business will have a simple financial plan as compared to a business expansion plan. A simple example is using initial capital to enter the stock market and later after becoming established, using expansion capital for hedge funds. The presented documents contrast so much in level of detail that they require consideration when choosing a financial planner.

The financial planner may be an individual or a company. For certain projects, it is required to have a team of financial planners working in synchrony and dividing up the work. The financial plan itself is something of value and the document may have to be kept under lock and key. This averts competition and the financial planner may be sworn to secrecy using a non-disclosure agreement. It goes without saying that this kind of work requires a specialist who has no vested interest in investments.</P> <P>Financial plans for personal fortunes help you not to spend out of control but still maintain a reasonable lifestyle. It concerns the totality of current and future investments and planned purchases. Familial wealth, such as trust funds, is spelt out and priorities are laid out. Even when you are disciplined it is unwise to access wealth without a solid financial plan on the ground. Liquid cash and disposable assets can be easily lost in poorly thought out investments.</P> <P>Several benefits make the action of financial planning worthwhile:

  • A financial plan consolidates all the current ideas and stimulates new ones. It reveals the feasibility of the project making it easier to review all options and choose the most viable.
  • Financial plans make the business development process to be transparent to investors as the financial planner is a neutral party. Bankers, shareholders and other lenders are entitled to a standard financial document.
  • Financial plans bring motivation and focus to the team or to the individual. It is precedent to forming a routine in carrying out financial responsibilities.
  • Financial plans are also used for recovery programs such as re-financing. Being in debt is only for a season if you have a plan.
  • A financial plan enables any business to react to market changes by creating new business avenues. The accumulated knowledge and additional research begins to be put into play.

The particular scenario that leads to the need of a financial plan should be recognized by the persons who are interested in a venture. They then should take their time in choosing a financial planner since there are several types out there. They should meet the minimum criteria and the maximum budget for the service.

Related Articles

Business News

Popular Posts

Share this article