Are you struggling to find an answer to the question, ‘What is comprehensive financial planning?’ Many people do not understand what is meant by comprehensive financial planning, even though this phrase is quite famous these days.
A lot of people are using this buzzword these days. There is, however, so much confusion as people do not understand this concept well. In a nutshell, comprehensive financial planning is nothing but holistic planning in most cases. But the meaning of this phrase differs depending on the context one is using that word.
What Is Comprehensive Financial Planning Then?
A financial planner or adviser will take some time to diagnose a person’s financial health using some processes. They will check everything to understand this aspect by asking relevant and the right questions.
The financial planner will learn everything about a person’s finances right from his income to investments. They will also learn about the debts and tax returns that a person is paying over the years. Financial advisors will also study trusts and wills if necessary to get the big picture of how a person is doing financially.
They will ask so many relevant questions as necessary to make proper assessments of a person’s financial condition before giving any recommendations.
You can compare this to the visit that you make to a doctor. A doctor, before giving treatment to a person, first learns about the condition he is suffering. Only after asking several questions and conducting a few tests based on the responses he will understand the core problem. He will prescribe the medication only after he knows what exactly is the main problem.
Similarly, comprehensive financial planning will help you realize how you can fix issues related to your financial health.
Benefits You Get By Doing This
There are several excellent benefits that you will get to enjoy when you do comprehensive financial planning. Here are some of them for your reference:
Save on Taxes: You will know what you can do to minimize your tax payments so that you can take more money home.
Safeguard Your Assets: Learn various ways to protect the assets that you own.
Increase Your Monthly Earnings: By doing comprehensive financial planning, you will learn ways and methods you can implement to maximize your monthly earnings.
Increase Your Savings: Learn of the financial principles and methods that you can implement to save money.
Peace of Mind: You are going to be happy, and you will have peace of mind when you know that your money is safe and the risks that you are taking are not that risky.
Boost Your Net Worth: When you know how to control your finances, it is going to assist in boosting your net worth. You will understand how to make smart financial decisions.
Efficiently Transfer Your Assets to Your Heirs: Learn methods and cost-effective ways to pass on your assets to your heirs.
These are some of the crucial benefits you are going to get when you choose to do comprehensive financial planning. You will now no more struggle with the question, What is comprehensive financial planning?