Financial planning is an important aspect of human life, helping people set and achieve their long-term financial goals, through investing, tax planning, asset allocation, risk management, and retirement planning. It means maximizing one’s wealth by investing in different asset classes, to capitalize on their unique risks, rewards, and liquidity attributes. Therefore, it becomes necessary for an investor to identify his financial needs and objectives, understand his investment options, and decide on an appropriate mix of various investment options. In general, it is recommended that financial planning begin as soon as possible, when a person begins to earn, so that they can benefit from compounding when they reach retirement. Capitalization means the calculation of the interest paid using the principal plus previously accrued interest. Every investor has different goals in life and in order to achieve that goal in a systematic and planned way, financial planning is necessary and for financial planning to be successful in the long term, an investor must understand his finances available in different forms and how he/she she can better use available resources (finances) to achieve higher returns and within a time frame set by them.
Therefore, in no uncertain terms, financial planning can be defined as an exercise aimed at identifying all of an individual’s financial needs, translating the needs into monetarily measurable goals at different times in the future, and planning the financial investments that will enable the individual to provide and meet their future financial needs and achieve their goals in life. The goal of financial planning is to ensure that the right amount of money is available in the right hands at the right time in the future to achieve an individual’s financial goals.
Financial goals can be:
 Buying a house

 Provide for a child’s education and marriage or

 For retirement

These can be measured in monetary terms.
Personal financial needs are of two types: protection and investment. Year
earning member providing your family with a continuing income after your
death is an example of need for protection. Cover the expenses of the marriage
of a daughter is an example of an investment need.
Therefore, the financial planner helps the client to maximize his
financial resources by using financial tools to achieve your financial goals.

Therefore, mathematically we can say:
Financial planning: FR + FT = FG
Where,
FR = Financial Resources
FT = Financial Tools
FG = Financial Growth

About the financial planner

A financial planner is someone who uses the financial planning process to
help another person determine how to achieve their life goals. The key
The role of a financial planner is to identify your financial planning needs,
your current priorities and the products that are best suited to meet your needs.
needs.
The financial planner normally possesses detailed knowledge of a wide range
of financial planning tools and products, but the primary role of the planner is to help
customers choose the best products for each need.
The planner can have a “big picture” view of a client’s financial situation and
make financial planning recommendations that are appropriate for the client.

The planner can see all customer needs, including budget and savings,
taxes. Investments, insurance and retirement planning or planner can work
with your client on a single financial matter but within the context of your
situation. Thus, Planner stands apart from other financial advisors, such as
tax advisers and insurance agents, who may have been trained to focus on a
particular area of ​​a person’s financial life.
Basis for financial planning
Financial planners generally look to “The Life Cycle Stage” to make a well-defined financial plan for their clients. As the need at each stage of the life cycle is different, the financial planner must carefully design a suitable financial plan for his clients so that they can successfully meet their goals within a given level of time and resources. However, priorities will change as people age and their personal circumstances change.

The life cycle of any individual can typically be subdivided into the following stages:
 Infant Stage
 Young Single Stage
 Young Married Stage
 Stage Young Married with Children
 Stage Married with older children
 Post-family/Pre-retirement stage
 Withdrawal Stage

Steps to obtain the maximum benefits of a financial plan:
To get the maximum benefits from a financial plan, retail investors should consider the following steps:
1. They must know their objectives correctly and with a clear vision to achieve them.
2. They must have a clear estimate of the time frame from their own experiences and personal observations to achieve their goal.
3. They should not rely solely on what financial advisers say, say news reports, but should do extensive research on their own into the nature and potential of the return-generating stocks that a particular scheme invests in .
4. They must not be attracted by emotional feelings of the market.
5. They must not time the market for entry or exit. The general rule of thumb says that the best way to enter the market is during the bear phase.
6. They should try to analyze their risk appetite while looking for investments. If, faced with the problem, they can also take help from financial experts.
7. They must timely review their portfolio when the market fluctuates or at the time of inflation.
8. They should be well versed in the financial statements of those occasional companies whose stocks they prefer.
9. They must have sufficient support from their additional financial resources at the time of loss, should it occur.
10. They should diversify their holdings including through mutual funds as much as possible to minimize risk.