FINANCIAL PLANING

A financial plan is the road map for your financial life. It covers major financial areas of your life addressing aspects such as cash flow, savings, debt management, risk management, childrens education planning, taxes, retirement, estate planning, and of course, investments and a strategy for managing them. It is more than a guide. It is a written strategy that gives you a clear, pragmatic path to follow towards the accomplishment of your most important financial goals.

Having a financial plan is like having a travel plan - it identifies where youre going, how and when youll get there, how much will it cost, and things to do along the way. A personal financial plan looks at where you are today and where you want to go. Then it sets out all the steps you need to take to get there. Everyone who is earning should draw up a financial plan. The plan will help you get the most from your money and help you in achieving your financial goals in life.

Some people naturally resist the process of creating a Financial Plan. Initially, it seems overwhelming and/or just too much of trouble. However, the potentially devastating consequences of not having it are far greater than the initial discomfort that you experience of the process. For most people we have worked with, the hardest part is just making the decision to get started. Once the process has begun, most clients find it engaging and interesting.

Do you need financial plan?

Yes - if you have an income, a family or planning to have one in the future, retirement dreams, and for many other financial reasons / goals that are unique to you. No one can predict the future but one can certainly be better prepared for it. An effective financial plan will make sure that you are financially prepared to deal with the unexpected events and stormy times. If you dont have one, youre more likely to end up in a financial mess. On the contrary, if you have one and the recommendations thereon have been executed, most of your financial goals will be satisfactorily met. A good financial plan can alert you to changes that must be made to make sure a smooth transition through lifes financial phases, such as decreasing spending or changing asset allocation.

By developing a financial plan you and your family:

  •     Will have a better understanding of your current financial position.
  •     Determine attainable retirement, education, insurance, and other financial goals.
  •     Review goals, funding strategies, and alternatives to balance all goals.
  •     Have the necessary financial resources set aside to fund your goals as they occur.
  •     Reduce the effects of unexpected events such as disability, premature death etc.


You need not be very rich to have a financial plan. No matter how much you earn and at what age, a plan is important to make your life easier. As your financial situation influences almost every aspect of your life, a regular financial plan can help give you peace of mind and protect you from unforeseen, unfavorable situations. Once you have a working personal financial plan, you can use it to make informed financial choices. Having a good financial plan will allow you an over view of what you can afford. It will allow you to analyze your wants versus your needs. It also provides you a way to see how to avoid major financial mistakes in the future.

Risks of not having a financial plan:

        You may be able to achieve what you want today but might not be able to achieve what you need few years down the line. Say, if you buy a new car now, you might not have enough funds later to buy your dream home.



        You may not see the big picture. Say, you may grow your wealth by making good investment choices but end up being tax inefficient and pay more taxes than you need to.



        You may take a short-term view of an opportunity and make rushed financial decisions, or fall into some scam trap. Worst of all, you may end up doing nothing (and just thinking of doing something) and never achieve your financial goals.



        You might become a victim of mis-selling and build a corpus of investment products that neither suits your financial needs nor your risk profile.



    You are very much likely to worry more about money and financial security. You may not know where you are today and where are you heading for.

Tips for Effective Financial Plan

    Be realistic with your investment returns; dont plan to outperform the markets.
    Account for market risk and dont assume the same return to repeat every year.
    Dont forget to plan for inflation, taxes and your financial planners fees.
    Review your financial plan regularly to see if you are on track or need any changes in the plan.

The need for financial plan is all the more very important in the turbulent economic times of today. If you dont have one till now, dont delay any more and Get it Now. Dont be self-satisfied that you will be okay whatever happens. Face the reality. Unless you develop a financial plan early, it will be too late.

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How to invest in equity mutual funds without risking your capital The dividends announced by the source scheme will be transferred to transferee scheme at regular intervals.
Tue, 14 Nov 2017 11:51:57 +0530


Mutual funds pour over Rs 11k cr in these 10 largecap stocks in September. Do you own any? Sectors such as financials, aviation, IT, energy and auto were on the radar of fund houses during September.
Mon, 30 Oct 2017 08:48:09 +0530


Sandeep J. Shah Speaking to CNBC-TV18, Shah said he expects the market to consolidate further for a little longer and then move upwards.
Thu, 23 Nov 2017 18:04:22 +0530


Sanjiv Bhasin According to Ashwani Gujral of ashwanigujral.com, tomorrow could be a sideways, range-bound day for the market.
Thu, 23 Nov 2017 16:28:09 +0530


Gautam Shah Shah observed that activity was taking place around 10,100-10,350 zones and once that is taken, the market could rise to 10,600-odd levels.
Thu, 23 Nov 2017 12:09:40 +0530


Better-than-expected state election outcome could propel Nifty to 11K by December US Fed meeting is scheduled in mid-December 2017; though the market has already factored in rate hike it would closely monitor the commentary for future actions.
Thu, 23 Nov 2017 11:13:13 +0530


Nifty likely to head towards 10,600; top 3 stocks could give up to 16% return in 6 months The rally getting bigger highlights inherent strength in the trend amid persistent demand at elevated levels and augurs well for the continuance of the up move going forward.
Thu, 23 Nov 2017 08:50:15 +0530


Sudip Bandopadhyay Sudip Bandopadhyay of Inditrade Capital said market will likely remain range bound for the next one-one and half months barring any global event that may enable it to break the range
Wed, 22 Nov 2017 16:35:42 +0530


Some signs of BFS demand is coming back, but this can only be confirmed in CY19, it added.
Wed, 22 Nov 2017 13:03:51 +0530


Goldman sees India’s FY19 GDP at 8%; negative impact of GST to fade Among other macro parameters, Goldman Sachs sees current account deficit to be widen, but manageable, at 2.1 percent of GDP in FY19.
Wed, 22 Nov 2017 11:51:02 +0530


Market is factoring reappointment of BJP government in state elections: Aneesh Srivastava Srivastava, who is Chief Investment Officer for IDBI Federal Life Insurance, talks about his take on the markets today and where one should ideally invest.
Wed, 22 Nov 2017 11:28:48 +0530


Ashwani Gujral The market is moving sideways in 10250-10350 range and chances are market will continue with sideways move till it makes a decisive move on the upside, said Ashwani Gujral.
Tue, 21 Nov 2017 16:31:46 +0530


UR Bhat Watch the interview of UR Bhat, Director of Dalton Capital Advisors with Prashant Nair and Ekta Batra of CNBC-TV18. He shared his readings and outlook on the market and on a few sectors.
Tue, 21 Nov 2017 13:44:46 +0530


Ajay Srivastava Srivastava is adding portfolios of consumer and infrastructure. The latter will get a boost ahead of elections, he added.
Tue, 21 Nov 2017 11:59:29 +0530


Liquidity scenario expected to come to neutrality in Dec 2017-Jan 2018: HSBC India In an interview to CNBC-TV18, Manish Wadhawan, MD Head of Interest Rates at HSBC India spoke at length about bond market.
Tue, 21 Nov 2017 10:44:00 +0530


Ashwani Gujral SP Tulsian believes the dip seen in Cement stock on back of news that Supreme Court has banned use of pet coke, should be used as a buying opportunity.
Mon, 20 Nov 2017 16:28:56 +0530


R Sukumar Meanwhile, in case of PSU banks, he said that they could lose market share despite recapitalisation.
Mon, 20 Nov 2017 12:33:49 +0530


Strong debut: HDFC Standard Life closes with 19% premium at Rs 344.60 per share The share price rallied as much as 27.24 percent intraday while it opened with 8 percent premium on the NSE.
Fri, 17 Nov 2017 16:15:39 +0530


HDFC Standard Life Insurance extends rally, jumps 27% after good debut The share price opened at Rs 313 per share against issue price of Rs 290.
Fri, 17 Nov 2017 10:06:56 +0530


Heads up! HDFC Standard Life to list on bourses with a premium: Experts Although analysts are not expecting a blockbuster listing, a small premium to the issue price could well be on the cards.
Thu, 16 Nov 2017 21:15:36 +0530


HDFC Standard Life Insurance to debut on bourses on November 17 This would be third life insurance company getting listing on exchanges, after ICICI Prudential Life and SBI Life.
Thu, 16 Nov 2017 11:50:19 +0530


Neeraj Kumar Gupta Investing in Bharat 22 ETF is like participating in the Indian growth story and I am sure investors will take part in this growth story said, Neeraj Kumar Gupta, Secretary, DIPAM.
Wed, 15 Nov 2017 10:56:16 +0530


Bharat 22 ETF anchor book subscribed 6 times As much as 25 percent of the total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore, ICICI Prudential MF said.
Tue, 14 Nov 2017 22:11:07 +0530


Khadim India closes with 8% discount at Rs 688.85 per share on market debut Khadim India has settled the trade at Rs 688.85 per share on the National Stock Exchange against IPO price of Rs 750. During the day, it could not cross issue price.
Tue, 14 Nov 2017 17:25:39 +0530


Galaxy Surfactants files IPO papers with Sebi During the initial share sale, as many as 307 shareholders will sell 63,31,674 shares of the company, according to the draft red herring prospectus (DRHP )filed with Sebi.
Tue, 14 Nov 2017 13:38:06 +0530


Khadim India debuts at Rs 723, a 4% discount to issue price The stock fell as much as 4.5 percent in early trade to hit day#39;s low of Rs 716 while its pre-opening price of Rs 730 remained the highest level.
Tue, 14 Nov 2017 10:08:22 +0530


New Listing: New India Assurance closes 3% lower to listing price on Day 1 The company’s shares closed at Rs 725.05 apiece, down 3.18 percent to the listing price of Rs 748.90 apiece, on the BSE.
Mon, 13 Nov 2017 17:38:59 +0530


The new entrant’s initial public offering (IPO), which sought to raise Rs 9,600 crore, was oversubscribed around 1.19 times. The price band was Rs 770-800 per share.
Mon, 13 Nov 2017 10:05:51 +0530


The Rs 10K crore New India Assurance IPO is likely to list on bourses at a discount: Experts The country#39;s largest general insurance firm New India Assurance Company, which recently concluded its initial public offer, will be making its stock market debut on Monday, November 13, and most likely at a discount or to a slight premium.
Sun, 12 Nov 2017 11:54:07 +0530


New Listing: Mahindra Logistics ends flat on its debut at Rs 429.15 The 3rd party logistics (3PL) solutions provider raised Rs 829.35 crore through the issue, at higher end of price band of Rs 425-429 per share.
Fri, 10 Nov 2017 17:07:49 +0530


Focus on growing non-Mahindra biz; targeting 20% topline growth: Mahindra Logisctics The company has managed to create a unique positioning in the industry and is an asset-light organization, said Pirojshaw Sarkari, CEO, Mahindra Logistics.
Fri, 10 Nov 2017 12:10:04 +0530


Mahindra Logistics debuts at discount to issue price of Rs 429, falls 3% It touched day#39;s low of Rs 416.10 on the National Stock Exchange while its issue price is day#39;s high.
Fri, 10 Nov 2017 10:20:53 +0530

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