Financial Planning
Financial planning in simple terms provides solution to the below equation
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Financial planning is the prerequisite of a successful and financially powerful way of life and gives you the edge over risks and anxieties of low financing in the times of need. It is a process where the end goal is to come up with a financial plan which helps in achieving your dreams . Financial plan is like a road map which you need to follow to meet your goals. It will also manage your risks in the journey along with cash flows so that you can do the things you want to in your life.
Just like we have family doctor concept whom you can consult for all your health related issues, financial planner is a finance doctor who is call away for all your financial queries be it related to insurance plans, investments, retirement plans, tax planning etc. With the variety of policies and investment options available today, it is almost impossible for anyone to find out the right plan which will perfectly suit them.
Planpaisa follows a structured format to run financial planning with you
Insurance planning
Insurance is to protect yourself, your family and loved ones, your assets from unforeseen events. It is the first and most crucial part of any financial plan because you cannot predict future and there is always risk associated with your life and assets. One unfortunate event and it can affect your life and assets. These events can be catastrophic events like earthquakes, floods, tsunami or can be personal in nature like accident, burglary, death etc. The only way to handle these events as far as financial matter is concerned is to protect yourself from these events via proper insurance plan.
Insurance is an additional expense as one needs to pay regular premiums but it is the right approach as it protects you financially from those bad days which might cost you multifold times more than premium in case you become victim. No insurance is like batting without helmet, gloves and guards in front of a fast bowler.
Tax planning
Tax planning needs no introduction as everyone wants to save tax to the best they can. However the tax planning is not just about reducing your tax liabilities but also optimising the spends so that your short term and long term goals are not impacted. There are various tax exemptions and deduction avenues available and selecting the suitable ones and investing in those avenues will provide benefit of minimizing tax and creating long term wealth as well. You as a tax payer also have to be cautious and ensure that you are not indulging in tax evasion or tax avoidance.
Investment planning
Investment planning is like heart of financial planning where we match your financial goals and objectives with your available financial resources. During investment planning, we analyse all your goals and allocate a plan to each goal in suitable asset class and structure on the basis of priority of these goals.
We all have one life and its our right to live it to the fullest. The advantage of doing proper investment planning is you will be able to start allocating resource to each goal and fulfill all your dreams. Sooner you start is better and in worst of the cases if you do not have fund left for any particular goal, it will be known at the planning stage so there will be no shock later.
Retirement Planning
Retirement Planning is most under rated of all. Everyone is aware about it but being a long term goal, most of the people keep it on sidelines because of other priority goals in life. They tend to think that they have enough time to plan for the retirement but at the end they fell short on it.
In reality, retirement planning is the easiest of all in case you understand the priority of it and start early. The goal becomes effortless if you have longer time horizon and it is one of those goal where time actually helps in building corpus for the retirement rather than the resources deployed.