Final answer:
It is true that understanding a client's subjective wishes is a crucial function of a financial planner. A planner must align the individual's financial plan with their personal goals in order to ensure economic success. This involves creating a budget, setting achievable goals, and guiding clients to make purposeful financial decisions.
Step-by-step explanation:
The statement that a planner's most important function is finding out what the client's subjective wishes are is generally true. While most clients may have a grasp of objective factors such as market trends, economic indicators, and financial products, they might not always be able to articulate what they want from their financial future or how to align their finances with their personal goals and values. A financial planner's role includes deciphering these subjective desires and creating a personalized financial plan that harmonizes with the individual's unique circumstances and lifestyle aspirations.
Understanding circumstances and their influence on financial decisions is crucial for economic success in both national and global economies. Creating a budget and setting goals is important because it provides a structure for managing money effectively and making informed decisions about investments, credit, and major purchases like homes or education. Goals should be achievable and the steps to reach them well-planned to ensure they align with the client's financial capabilities and objectives.