Financial Planning Facts:

Financial Planning Facts:

• Financial Planning is a Process and discipline: Any Financial Plan provides a brief on your financial goals and a way to achieve them. It can help you focus on your financial resources and goals, and create a plan of action for attaining your dreams. However, your situation will change constantly over time, due to changes in your personal circumstances or in external circumstances. As a prudent person, you should review and update your Plan periodically; to be sure it still meets your needs.
• Financial Planning is Not Precise and provides 'No Guarantees': The projections or results of any Financial Plan are not precise and are often based on the information provided plus many assumptions & workings. The future is uncertain and planning for large number of years in advance is difficult. One should use Financial Planning for guidance in order to plan for the foreseeable future and do regular review of the same. Prudent financial planning may increase your chances for success, but cannot guarantee your goals will be achieved.
• Financial Plan – Understanding assumptions/ disclosures is important A Financial Plan is often based upon many assumptions and has certain inherent limitations attached to it. Further,there are also many other features, issues which you would like to know beforehand. Such assumptions, limitations, features, issues, etc. should be detailed in financial plan and you should through the same at leisure. The information includes assumptions about future returns on products, your income growth, inflation assumptions, etc., disclosure on calculation methodology and limitations, etc.