Question

Why do we say the financial planning is an interactive process? Explain base on financial perspective.

Answer 1

*Any doubt please comment

Financial planning is an interactive process since it involves understanding the in depth goals of the client, framing challenges , checking for the resources and developing the behavior and sacrificies requried to achieve the goals. It involves gathering information about the financial situation, his financial goals, understanding of the client's time frame and asking for the client's take on risk. The process involves interacting with the client to on various accounts such as preparing a budget ,management of debt , tax planning , investments and saving. Also financial planning involves multiple meetings with the prospective client and also assisting him throughout the professional relationship.