Chapter 5, Problem 5.1PQ1

Summary Introduction

To explain:

The relationship between the financial services and overall financial planning.

Introduction:
Financial services refers to those services which facilitate the finance related safety, security and availability to an individual. There are many financial services available in the market such as commercial banking services, investment banking services, foreign exchange services and investment services.

Financial planning refers to a process which is required to develop a roadmap of the finance to achieve the financial goals of an individual.

Explanation of Solution

The financial services and overall financial planning are related to each other. The overall financial planning is divided into different part and the different financial planning requires the different financial services. The relation between both is shown below:

• The financial services such as general insurance and life insurance services are important for the financial planning as it helps in retirement planning of an individual.
• The financial services such as loans and debt, helps an individual to financially plan its future requirements.
• The mutual funds, gold, commercial papers and shares all are important for the purpose of investment planning.
• There are many financial services available which helps in the tax planning of an individual.

Conclusion

Thus, the financial services and financial planning both are related to each other as different services are required to plan the finance of an individual.