Identifying proper financial goals and planning to achieve them in a systematic way is the heart of financial planning. Without a proper chalked out financial plan, there are a lot of risks. Often we find people without a proper retirement corpus and no money to bank upon because they haven’t planned for it in advance.
Not understanding the risk profile is another major drawback that a person faces if he hasn’t done proper financial planning. Financial planning reduces the risks of loss by removing impulsive decisions through a seasoned and planned financial advice.
Besides planning for emergency, understanding the investment strategies
and risk profiles, a financial plan helps you prepare for major events of life.