Preparing and executing the plan

Preparing the plan

After you have selected your investment consultant, the advisor needs to prepare your investment plan. This is possibly the most important stage of financial planning. You need to share your investment objectives with your consultant along with the time frame for each of them. You must give complete details of your existing resources. It is imperative that you indicate the amount of risk you are willing to take in order to achieve your financial goals. Only then can it be decided how much of your money can be invested in equities and how much in more conservative instruments. Your advisor will then take all these factors into consideration and prepare a financial plan for you.

Executing the plan

Once the plan is prepared, it needs to be executed. In other words, you need to buy the necessary insurance policies, mutual funds and other investment instruments specified in the plan. Your investment consultant will advise you how to go about and help you with the application forms and other paperwork required for the same. It is important that you give all the relevant details asked for. For example, before taking a health plan, you need to disclose your complete medical history. If such a disclosure is not done properly, you could lose out on your claim at a later date.