Association Between Financial Planning and Professional Advice – Do They Co-Exist?

Abstract

Financial planning is a skill which is required to manage one’s money, achieve financial goals through wealth accumulation along with a perfect balance to meet daily financial requirements. Due to wide variety of products available in financial service sector, individuals need to be financially literate in order to make realistic financial plans and decide the best suited investment product where returns beat inflation and accumulation is achieved. The best way to achieve one’s financial objectives is through proper financial planning keeping in mind individual’s income, saving capabilities and risk appetite. This study attempts to analyze the relationship between income and financial planning. The paper further examines whether individual seek professional advice for personal financial planning. The findings suggest that majority of individual have set financial goals. But on the other hand, majority of individuals don’t have set financial plan. Also majority of individuals are not satisfied with their financial decisions. The results emphasize on the need for seeking professional advice for personal financial planning.

Keywords: Investment Pattern, Financial Literacy, Financial Goals, investment portfolio, Individual investor

JEL Classification: G02, M59