Is your life taking new leaps, but your finances are uncertain? Learn how financial planners can make things right. 

Finance planning is no longer a fancy term. Neither is it limited to high-net-worth Individuals (HNIs). With an increase in disposable incomes and numerous financial and societal goals to achieve, it is essential for every individual to do personal finance planning. It is the art of managing an individual’s income, expenditure, and savings to assess one’s financial condition. Further, it is the art of estimating your assets and liabilities to create a roadmap for your future goals. 

Whether you are a salaried employee, a self-employed person, or a person having multiple businesses or income sources,  personal finance planning is vital for you. However, not everybody is equipped with the right knowledge and skill sets to handle their finances effectively, considering the current economy, inflation, market fluctuations, and purchasing power. One wrong decision might cost a lot. Here, certified financial planners come into place. 

Who are Financial Planners

Financial Planners are practically the money coaches or advisors for an Individual. They help individuals in streamlining their incomes, reducing or managing their expenses, amplifying their savings, and finally enhancing their investments to gain maximum returns.

Certified Financial Planners

What distinguishes certified financial planners is their education, showcasing their credentials and expertise. Certified by the Financial Planning Boards of India (FPSB) and having gone through a rigorous education process, they have specialized in goal-based financial planning. They have the expertise to advise individuals on the taxation system, insurance, investments, retirement planning, and estate management.   

They work with individuals independently or might be employed by financial planning firms, wealth management institutions, banks, etc.

Necessity of Certified Financial Planners

Everybody has certain goals in mind. Someone wants to buy a home, someone wants to create funds for their children’s education, and someone wants to retire early. However, not everybody has the right knowledge about personal finance planning. 

As per a study conducted by NCFE, only 27% of Indian adults are financially literate. It increases the chances of buying the wrong financial products, making poor investment choices, crafting terrible financial planning, etc. A certified financial planner can save people from all of these.

Services Offered By Certified Financial Planners

A certified financial planner can simplify his or her clients’ lives in these areas. 

Short-term Goals

• Debt Restructuring: If the client has too many liabilities or monetary debts to pay, the financial planner can be his savior.

• Budgeting: The certified professional can help the client with his or her income, expenses, and savings.

• Taxation: The certified financial planner will help you save more taxes by suggesting measures, investing in financial instruments like ELSS, NPS, and plans that give tax exemption provisions.

Long Term Goals

Personal Finance Planning and Restructuring

A certified financial planner will analyze an individual’s financial condition, number of assets owned, liabilities to pay, and their financial goals. Considering all the factors, they will create a simplified personal finance plan, tailor-made for the individual. 

Over time, they will check the progress made, setbacks faced, market conditions, and results driven by the plan. With the analysis, the financial planner will take further action. 

Consider the case of a woman named Bethy, who is a single mother in her 30s. She was already planning for her only son’s college education funds when her mother got diagnosed with dementia, and her father had his knee transplantation. Her life changed overnight. Her CFP helped her in organizing finances, creating a personalized budget, and making the most of the employer-based retirement plan. Further, the certified financial planner handled insurance plans and estate management, providing her with financial relief in such a critical time. 

Investment Planning

Certified financial planners need to have certifications like SEBI-registered RIAs to advise their clients on effective investment strategies like mutual funds or stocks. A  certified financial planner can help you make the right investment decisions according to your capital and risk-bearing capacity. 

They learn constantly about various financial markets, taxation, and various legal systems 

Whether you aim for a steady income or higher growth, a certified financial planner will help you achieve your goals.

Retirement Planning

Financial planners help individuals planning early retirement or already retired manage their funds well. They assess the current income, social security schemes, and tax provisions and create a corpus for future retirements. 

Estate Management

Certified financial planners ensure that when an estate is passed from one generation to its heirs, with minimal legal and financial complications. A CFP can guide its clients on estate planning strategies to avoid tax complications. Further, he or she can work with legal professionals to draft wills of inheritance and set up trusts for minimum legal complications

Real Case Study: How A Certified Financial Planner Helped A Family Achieve Their Goals

How Aditya Sharma Rebalanced His Finances for a Secure Future

Introduction

Aditya Sharma, a Mumbai-based IT professional, stands out for his proactive approach to financial planning—choosing not to depend on parental support and instead taking charge of his own financial future. Initially, Sharma’s portfolio was heavily tilted toward real estate—about 70%—a common trend in Indian households but one that can pose challenges for long-term wealth creation and retirement planning.

Recognizing this imbalance, Sharma sought professional guidance from a well-known financial advisor in 2021. This decision marked a turning point in his financial journey toward diversification and goal-based investing.

The Initial Scenario: Heavy Dependence on Real Estate

Before consulting a professional, Sharma managed his finances independently. In 2014–15, his family invested significantly in commercial real estate for a healthcare venture, which later turned into a rental property. This single investment dominated their portfolio, accounting for nearly 70% of their total assets.

“Before seeking help from a professional advisor, we were making haphazard investments, especially in real estate,” recalled Sharma.

From Real Estate to Mutual Funds

After understanding the pitfalls of over-reliance on property, Sharma began diversifying. His earlier portfolio breakdown—70% real estate, 17% equity, 10% gold, and 3% bonds—was gradually rebalanced.

Now, real estate constitutes about 60% of his portfolio, while equity mutual funds have increased to 30%. He plans to sell part of his real estate holdings in the future and reinvest the proceeds: 25% in fixed deposits for a new home and 75% in equity mutual funds.

The mutual fund portfolio has also evolved—from large-cap heavy investments to a more balanced mix of mid-cap and flexi-cap funds, aligning with his moderate risk profile and long-term objectives.

Setting Clear Financial Goals

With the financial planner’s advice, Sharma adopted a structured, goal-based financial plan. His major objectives include:

• Retirement corpus: ₹10 crore in 17 years for a comfortable post-retirement life.
  
• Children’s education: Building separate funds for his daughter’s medical studies and his son’s future education.
  
• Annual vacations: Setting aside short-term deposits for yearly travel plans.
  

Each goal now has its own dedicated investment vehicle, ensuring focused and measurable progress.

A Strategic and Disciplined Approach

Previously, Sharma and his wife Sneha had no formal savings structure, leading to financial anxiety. After adopting goal-based planning, they started investing a fixed amount monthly through SIPs (Systematic Investment Plans).

“We now set aside a certain sum monthly, calculated as income minus investments, before allocating for expenses,” said Sharma. “This approach brings us a lot of peace of mind.”

Together, they now invest about 30% of their monthly income, with bonuses and extra earnings going directly into mutual funds.

Ensuring Safety and Protection

Understanding that wealth building must go hand-in-hand with risk management, the couple strengthened their insurance and emergency planning:

• Life Insurance:
  
  • Aditya: ₹2.5 crore cover with an annual premium of ₹55,000
    
  • Sneha: ₹2 crore cover with an annual premium of ₹45,000
    
• Health Insurance:
  
  • ₹10 lakh each of individual health cover, in addition to corporate coverage (earlier ₹5 lakh each)
    
• Critical Illness Cover:
  
  • ₹10 lakh each, with a premium of ₹2,700 per person annually
    
• Emergency Fund:
  
  • ₹15 lakh in fixed deposits, equivalent to six months of family expenses (up from ₹7–8 lakh four years ago)
    

Lessons Learned

Reflecting on his journey, Sharma believes that starting early is key to financial success.
“One thing always at the back of my mind is that maybe we could have planned this a little earlier—perhaps at age 30 or 35. Starting sooner gives you a bigger head start,” he shared.

He now encourages younger family members to plan and invest early to reduce uncertainties and avoid impulsive financial decisions.

He also emphasizes the importance of adequate insurance: “Knowing that we are sufficiently covered in terms of life and health gives us a lot of comfort.”

Advisor’s Perspective

The Financial advisor credits Sharma’s progress to his discipline and commitment:
“For the success of any financial plan, the key is the investor’s sincerity. Aditya and Sneha have been fully dedicated from day one, balancing their present enjoyment with future planning. Their consistency ensures they’ll meet their financial goals.”

How It Helped Them

Aditya Sharma’s financial journey exemplifies how thoughtful diversification, professional guidance, and disciplined execution can transform one’s financial future. His transition from real estate-heavy investments to a balanced, goal-oriented portfolio demonstrates that it’s never too late to take control—provided one is willing to plan, act, and stay consistent.

How to Choose The Right Financial Planner

An individual must find the right financial planner to make their personal finance planning bear fruit. It is essential to find the right man who understands your financial complexities, goals, and plan properly to bring results.

Here are some of the checklists to go for when finding the right financial planner. 

Strategize Your Financial Goals

You need to know all about your financial conditions, income, assets, expenses, and debts. Further, you need to strategize your financial goals based on the parameters. Those goals must be attainable by a certain time.

For example, if your income is between ₹50,000 to ₹1 Lakh a month, and you plan to buy a home, get married, or have children, you need to budget an ideal amount like ₹40-₹50 lakhs and the time period when you can achieve the goal. 

Credentials 

Always look for certified financial planners (CFPs).  They have gone through a rigorous education, training, and evaluation process comprising investment planning, retirement and tax planning, risk, and estate planning, empowering them to take the right personal finance planning decisions on behalf of clients. 

Fiduciary Duty

Fiduciary duty is the obligation that binds financial planners to make decisions for clients’ well-being. CFPs are bound by the FPSB India Ethics Requirement. 

Experience & Expertise

Always enquire with a financial planner about their years of experience. Choose a financial planner with a longer service time, like ten years. Further, ask the financial planner about their other clients, the assets under management under them, and their performance. See their proven track records and how efficiently they delivered others’ personal finance planning goals.

Services Offered

While choosing a financial planner, see the services they are offering. Whether they specialize in only one category of finance planning or offer all types of services, that is the key.

Working Principles

How a financial planner works sets the tone. Whether he or she offers you a tailor-made plan according to your requirements or gives general predicaments? How often does he or she agree to meet with you? Does he prefer to constantly monitor, review his or her plans according to your situations, market conditions, and make changes accordingly?

Finally, do you feel seen or heard, and your questions answered?

Fee Commissioned

Ask the financial planner about his or his fees and their duration, whether the planner takes profit from earnings generated or nominal ones. Besides, how often does he charge his commission, and how does he compare the data with others?

Reviews and Testimonials

Ask around your friends and relatives. Check online for testimonials and client stories about the specific certified financial planner. See how he or she has helped others achieve their personal financial planning goals.

In case of organizations, look for their credibility, boards, years of inception, and working. 

Conclusion 

It is essential in today’s world to have a financial planner who can help you handle your financial journey, goals, and life transitions smoothly. In India alone, the number of certified financial planner professionals has grown 17.7% in 2024. However, finding the right financial planner whom you can trust wholeheartedly with your money is the key. Trust your intellect, check for their credentials, certifications, expertise, experience, and reviews for their past performance before shortlisting your money coach. 

DISCLAIMER: The information given in this blog is for educational purposes only. Any content of this blog is not investment advice.