Financial planning is an ever-evolving field. I always make sure that I stay updated to give the best possible advice to my clients.

Q: How do you approach financial planning to ensure clients achieve long-term security?

I always believe that in any financial planning, for achieving long-term security, one must have a purpose. By identifying the purpose, we drew a map of life with our clients. By drawing a map of life, clients can easily identify their short term and long-term goals. In long-term goals, there are non-negotiable goals which clients never compromises with these goals. Like world class education for their children, the golden period for their second innings. By drawing a map of life, we identify with the clients that these are the long-term goals and for long term goals, if once clients accept that these goals are for their long-term planning, they will never compromise with their planning. With the help of a map of life, we help our client to achieve their long-term financial security.

Q: Can you share a success story where strategic financial planning made a significance difference?

A 31-year-old MNC professional is struggling with high debt with no future planning at all. His condition is 38 lakhs rupees home loan, 17 lakhs rupees personal and credit card loans with high expenses in the family. He doesn't have any plans for his future. We suggested him to use debt snowball method to reduce a smaller debt first and started SIPs in an index and balance fund to create an emergency fund and suggested retirement planning through passive income. After three years, he is easily debt free from his personal and credit card loans. We built 15 lakhs emergency fund and we created retirement corpus and started planning for his child also because he has a child. We sit with him every three months to review his financial portfolio and increase his financial planning to achieve long term goals successfully. Q: What tools or techniques have helped you create comprehensive financial plans?

We use cash flow analysis first, then A by H tool to ascertain risk parameter of a family by which we can ensure how much insurance one should have. After that, we use capital analysis tool by which we can ascertain how much capital one family should need to maintain their livelihood. After that, we use portfolio management software for asset allocation on the base of risk tolerance of a client. After that, we move to the retirement and estate creation by which we can ascertain a smooth retirement planning for a client. For this, we use EPM and RPM tools. These tools help to ascertain expenses of a family by taking consideration of inflation and other expenses by which one can easily reach their retirement planning goals. After that, the most important is financial monitoring and review because until and unless we review periodically, we cannot reach our goal.

Q: How do you stay updated on trends and changes that influence financial planning?

Staying ahead in financial planning means staying updated. I ensure that I have the latest insights of the financial market. That is why I follow CNBC, and The Economic Times. I use different podcasts. Basically and mainly, I listen to the MDRT podcast which gives me the idea of using different techniques and tools to ensure I give the best advice to my clients. I frequently attend many webinars which help me to stay updated on market news. I prefer to undergo through offline and online courses.

Financial planning is an ever-evolving field. I always make sure that I stay updated to give the best possible advice to my clients.

Mastering financial planning for a secure future

Transcript

Author(s):

Arvind Kumar Das