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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Big bet on SIPs: MFs garner over Rs 67,000-cr in FY18 In comparison, Rs 43,921 crore was collected through the investment plan in 2016-17, according to the latest update with Association of Mutual Funds in India (Amfi).
Mon, 16 Apr 2018 16:20:25 +0530


Equity MF inflow down 59% to Rs 6,657-cr in March on LTCG According to a report by rating agency Icra, equity funds, including equity-linked saving schemes saw monthly net inflow of Rs 6,657 crore in March, down from Rs 16,268 crore infusion seen in February.
Thu, 12 Apr 2018 18:25:23 +0530


Equity mutual funds log Rs 1.7 lakh crore inflow in FY18 Strong inflows have pushed the asset base of equity MFs by 38 percent to Rs 7.5 lakh crore during the period under review, the data showed.
Mon, 09 Apr 2018 15:35:18 +0530


Most equity mutual funds underperform in last 1 year: Report The findings are a part of SP Dow Jones Indices#39; scorecard SPIVA, which tracks the performance of actively managed Indian mutual funds against their benchmarks over one-year, three-year, five-year and 10-year periods.
Mon, 26 Mar 2018 17:58:12 +0530


Tushar Pradhan Speaking on investor behaviour, Tushar Pradhan believes that the real test of the investor would be in case of a major correction if there is a substantial external element.
Wed, 14 Mar 2018 10:43:13 +0530


Motilal Oswal AMC bets on these five themes, do you own any? Sonthalia believes that short-covering activity will drive the market higher.
Tue, 24 Apr 2018 11:28:04 +0530


Podcast | Hold Nifty longs with a stoploss of 10,460; 3 stocks which could give up to 15% return Here is a list of top three stocks which could give up to 15% return in short term.
Tue, 24 Apr 2018 10:56:34 +0530


Ashish Chaturmohta "The index has resistance zone at 10,630-10,700 levels. In Nifty options, strike price 10,700 Call has the highest open interest (OI) in Calls, suggesting market could head towards 10,700 levels but likely to face resistance this level," says Ashish Chaturmohta, Head Technical and Derivatives at Sanctum Wealth Management.
Tue, 24 Apr 2018 09:25:04 +0530


Trade Setup for Tuesday: Top 15 things to know before Opening Bell FIIs sold shares worth Rs 259.08 crore, while domestic institutional investors bought shares worth Rs 387.26 crore in the Indian equity market
Mon, 23 Apr 2018 19:56:19 +0530


Vinod Nair The escalating load of NPAs, bond yields and decline in credit growth rate are major issues faced by state run banks.
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Dinesh Rohira Here is a list of top three stocks which could give up to 12% return in short term.
Mon, 23 Apr 2018 11:19:33 +0530


Akash Jain Here is the list of three stocks that can give up to 100% return.
Mon, 23 Apr 2018 10:56:17 +0530


Nifty likely to get into a corrective downward wave; Buy Wipro, sell ICICI Bank for short term “Nifty breaking out cluster of resistances placed around 10,570 to 10,600 is unlikely as of now” says Jaydeb Dey, Technical Analyst at Stewart Mackertich Wealth Management Ltd.
Mon, 23 Apr 2018 07:57:44 +0530


Chandan Taparia Underperformance in Bank Nifty has given a pause in positive momentum of broader market.
Sun, 22 Apr 2018 11:06:42 +0530


Nifty likely to trade in range of 10,400-10,650 in expiry week; 4 stocks to buy One should remain cautious in the zone of 10,580-10,740 as the fall from this zone can be sharp and may not give the exit opportunity later.
Sun, 22 Apr 2018 10:33:47 +0530


Amit Gupta We believe any directional move in the Nifty has to be triggered by the banking index. Till the banking index does not surpass 25,300, ongoing consolidation in the Nifty may continue.
Sun, 22 Apr 2018 09:00:19 +0530


Sumit Bilgaiyan Next week#39;s trend will be decided on the basis of quarterly earnings and trends in global markets.
Sat, 21 Apr 2018 12:07:55 +0530


Shubham Agarwal "Either one needs to adjust the non-linear asset for linearity or the most effective way is to draw signals from underlying using Technical Analysis and apply them on options to amplify returns," says Shubham Agrawal, CEO Head of Research at Quantsapp Private Limited.
Sat, 21 Apr 2018 10:16:27 +0530


Yogesh Mehta Any negative surprise in 2018 state elections outcome can impact market sentiments and it may displace all other factors for the market.
Fri, 20 Apr 2018 14:50:11 +0530


Hadrien Mendonca Here is a list of top three stocks which could give up to 11% return in the short term.
Fri, 20 Apr 2018 09:52:24 +0530


Nazara Technologies gets Sebi#39;s go-ahead for IPO The company is popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.
Mon, 23 Apr 2018 18:37:29 +0530


IndoStar Capital gets Sebi#39;s nod for Rs 2,000 cr IPO The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in January and received "observations" from the regulator on April 3, as per the latest update with the markets watchdog.
Mon, 09 Apr 2018 18:43:18 +0530


Strong debut: Hotel chain Lemon Tree closes 29% higher on Day 1 The hospitality chain’s stock closed at Rs 72.10 apiece, a rise of Rs 16.1 to the issue price of Rs 56. It had listed at Rs 61.6, a premium of 10 percent to its issue price on the National Stock Exchange (NSE).
Mon, 09 Apr 2018 15:37:30 +0530


New Listing: Lemon Tree Hotels debuts with 10% premium at Rs 61.6 apiece The Rs 1,038.68 IPO received bids for 15.49 crore shares against the total issue size of 12.98 crore shares.
Mon, 09 Apr 2018 10:00:24 +0530


Lemon Tree Hotels to make stock market debut on April 9 The company in consultation with merchant bankers has fixed final issue price at Rs 56 per share.
Sat, 07 Apr 2018 17:00:04 +0530


Mishra Dhatu Nigam closes tad higher than issue price The stock touched an intraday high of Rs 91 and low of Rs 86.05 after opening 3.3 percent lower at Rs 87.
Wed, 04 Apr 2018 17:12:22 +0530


ICICI Securities makes weak debut; stock dips 14% below issue price The stock got listed at Rs 431.10 with a discount of 17.09 per cent over the issue price. During the day, it touched an intra-day high of Rs 462.70 and an intra-day low of Rs 431.10.
Wed, 04 Apr 2018 15:20:20 +0530


Mishra Dhatu Nigam opens lower, falls over 4% to Rs 86.05 The stock price fell as much as 4.4 percent in morning to hit a day#39;s low of Rs 86.05 while it touched an intraday high of Rs 90.90.
Wed, 04 Apr 2018 10:33:32 +0530


ICICI Securities debuts at Rs 453.80, down 13% from issue price The stock price debuted at Rs 453.80 on the National Stock Exchange, down 12.73 percent compared to issue price of Rs 520.
Wed, 04 Apr 2018 10:08:15 +0530


4 PSUs file IPO papers with Sebi Railway infrastructure firm Ircon International and warship maker Garden Reach Shipbuilders and Engineers are the other two firms which have filed IPO papers.
Mon, 02 Apr 2018 19:19:16 +0530


Karda Construction debuts with a discount of 24% at Rs 136 The stock listed at Rs 136, a discount of 24 percent to the issue price of Rs 180.
Mon, 02 Apr 2018 10:14:27 +0530


New Listing: Sandhar Technologies lists at a premium of 5% at Rs 349 The stock listed at Rs 349, a gain of Rs 27 to the issue price of Rs 332 per share.
Mon, 02 Apr 2018 10:04:22 +0530


Sandhar Technologies, Karda Construction to debut on bourses on April 2 Sandhar Technologies has fixed the final issue price at Rs 332 per share and Karda at Rs 180 per share.
Wed, 28 Mar 2018 23:50:20 +0530


T Suvarna Raju It was no fireworks for Hindustan Aeronautics Limited (HAL) debut on dalal street. The defence major listed at Rs 1,159 per share versus issue price of Rs 1,215 per share.
Wed, 28 Mar 2018 15:07:13 +0530


Hindustan Aeronautics debuts at Rs 1,159, falls 5% from issue price The stock price has opened at Rs 1,159 on the National Stock Exchange while it started off trade at Rs 1,169 on the BSE, falling 4 percent.
Wed, 28 Mar 2018 10:05:24 +0530

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