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Introduction Most of us spend time planning for their car or Gadget purchase or the next vacation… rarely, we have a clear plan on our other important life goals like Home purchase, retirement, kids’ education etc. Not surprisingly, this approach often creates anxiety and stress in future! Moreover, most of us face multiple challenges- ? Can’t afford much time for management of my Financial resources and assets ? I don’t have knowledge ? Products are becoming too complex ? Lot of products are available ? Confused with so much of information ? Markets are very volatile ? Expect high return and want to beat market ? Fixed return or variable return! What’s good for me? What is a Financial Plan? Complete document detailing- ? Financial Goals-List of Various financial Goals of life with clear timing ? Goal Values- Amount needed to meet those goals, adjusted with inflation ? Risk Profile-Risk which should be taken while investing. ? Cash Flow Analysis- Making year wise expected cash inflow and outflow schedule to understand, whether one will be able to meet the goals with all present and future income. ? Goal Analysis- the Goals which have to be dropped, due to lack of visible income. The goals which should be planned first. The goals which should be reduced due to the low amount of cash available. ? Portfolio-Right investment selection for achieving the goals ? Review Calendar – At what intervals, the financial plan would be reviewed and rebalanced. Areas covered in financial planning ? Investment Planning- Designing the best investment portfolio as per the risk profile of the individual. Right Asset allocation and choosing the right investment. ? Consumption and savings planning- How much one should save per month to achieve the financial goals. Which expenses one need to avoid and the expenses one need to reduce. ? Insurance Planning- How to cover the risk. One is prone to various risks like medical, accidental or life. Planning the right insurance portfolio ? Retirement Planning- Designing a proper plan on How to retire with complete financial freedom. How much amount one requires retiring happily and where one should invest the retirement funds for the highest return on investments. . ? Estate Planning – Proper documentation of real estate ownerships, along with management. Also includes the plan to pass the estate to next generation. ? Tax Planning- There are various ways to save tax legally. Planning for maximum tax savings as per income tax act. Choosing right investments and insurance products for maximum savings and returns.
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