Making the Financial Plan Work & Financial Advisors must realise that:

Making the Financial Plan Work

The clients are the focus of the financial planning process. To achieve the best results from your engagement, I is better to avoid some of the common mistakes in financial planning process...

1. Set SMART - 'Specific, Measurable, Achievable, Relevant, Time-bound' Goals for the clients
2. Understand the explicit and implicit costs and effects of each financial decision and non-decision
3. Periodic review of financial situation and the life goals /objectives is necessary
4. Cover all essential areas /aspects of life and explore emerging situations
5. Do not procrastinate implementing financial plans or taking any financial decisions
6. Be realistic in expectations and make proper assumptions
7. Disclose all important matters to client
8. Focus only on areas that are strong and ignore weak areas
9. Ignoring taxation

Financial Advisors must realise that:

1. Financial planning is for everyone – rich or poor.
2. It never too late to do financial planning. The sooner the better.
3. Financial planning is different from investing or portfolio management
4. It is important to collect all relevant information and save all financial planning related documents
5. SEBI (Investment Adviser) Regulations, 2013 may be applicable to them