Authored BY: Ajit
Panicker
Wealth management according to Wikipedia is "Private wealth management (PWM) is the term generally used to describe highly customized and sophisticated investment management and financial planning services delivered to high net worth investors. Generally, this includes advice on the use of trusts and other estate planning, vehicles, business succession or stock option planning, and the use of hedging derivatives for large blocks of stock."
Financial Planning according to FPSB India is " "Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement. TheFinancial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans. "
The definition of both these diciplines of the financial field are too close and yet too far. Where wealth management is manging the funds, the wealth of the High networth individuals of the scoiety, financial planning is about helping all kinds of clientele meet their lif goals with their available resources by pruning and by scissoring at many places.
Wealth management is about helping the client accumulate wealth through all those investment tools which provide great returns, while financial planning will see to it that the client's desired goals are met, but all this is done in a very organized and systematic manner by examining the present status and then strategising.
The focus in the financial planning process is to help client achieve " FINANCIAL FREEDOM"
The three basic questions that you will answer during financial planning:
Wealth management according to Wikipedia is "Private wealth management (PWM) is the term generally used to describe highly customized and sophisticated investment management and financial planning services delivered to high net worth investors. Generally, this includes advice on the use of trusts and other estate planning, vehicles, business succession or stock option planning, and the use of hedging derivatives for large blocks of stock."
Financial Planning according to FPSB India is " "Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement. TheFinancial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans. "
The definition of both these diciplines of the financial field are too close and yet too far. Where wealth management is manging the funds, the wealth of the High networth individuals of the scoiety, financial planning is about helping all kinds of clientele meet their lif goals with their available resources by pruning and by scissoring at many places.
Wealth management is about helping the client accumulate wealth through all those investment tools which provide great returns, while financial planning will see to it that the client's desired goals are met, but all this is done in a very organized and systematic manner by examining the present status and then strategising.
The focus in the financial planning process is to help client achieve " FINANCIAL FREEDOM"
The three basic questions that you will answer during financial planning:
·
Where are you today?
What is your current financial situation?
·
Where do you want to
get to? What is your vision of your future financial situation?
·
Will you be able to
get there? How do you plan to achieve your vision?
During the financial
planning process you analyze what your
financial needs and goals are. Then, you quantify in money terms what resources
you need to meet those goals, and quantify the time period during which you
want to achieve these goals. Finally, you write an action plan on what you need
to fulfill your plan in terms of what products to buy and what types of savings
to make.
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