Financial Planning

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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Himadri Buch Venkatesh mentioned that systematic investment plans have continued to show an upward trend despite volatile markets.
Thu, 21 Feb 2019 16:47:14 +0530


Himadri Buch The company in January 2019 had reported exceptionally good results for the December 2018 quarter.
Sat, 26 Jan 2019 15:14:11 +0530


Upbeat on capex companies and some commercial vehicle players: DSP Investment Based on earnings, valuations have come to long-term averages, so the risk-reward looks favourable for Nifty stocks, said DSP Investment#39;s Gopal Agrawal
Thu, 21 Feb 2019 15:45:38 +0530


After Q3 earnings, 3 banks make it to Motilal Oswal#39;s list of 10 focus stocks The domestic brokerage firm expects the Nifty EPS to grow 9 percent in FY19 and 27 percent in FY20.
Wed, 20 Feb 2019 09:51:35 +0530


Markets are volatile because due to macro and political headwinds: Max Life Insurance "It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
Tue, 19 Feb 2019 15:59:25 +0530


Markets are volatile because due to macro and political headwinds: Max Life Insurance "It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
Tue, 19 Feb 2019 15:59:25 +0530


Jayant Manglik The rupee has witnessed volatile swings over the last few days on the back of on-going US-China trade talks, volatile crude oil prices, outflows from domestic equities and rising dollar index
Tue, 19 Feb 2019 12:17:31 +0530


Shubham Agarwal Nifty Options data for the week shows that in monthly expiry, Call writers gained strength at 10,800-10,900 strike while Put writers stay firm at 10700 strikes
Mon, 18 Feb 2019 13:49:50 +0530


Akash Jain The strategy at present should be to invest in a phased manner only in companies that are not connected to any political party, have a robust business model, strong earnings and cashflow visibility
Mon, 18 Feb 2019 11:03:24 +0530


Shabbir Kayyumi Majority of the momentum oscillators are in oversold zone creating the possibility of a bounce back.
Mon, 18 Feb 2019 09:06:49 +0530


Sumit Bilgaiyan It is time to apply bottom fishing strategy with capital protection approach. One should invest in 4-5 parts till election results are announced.
Sun, 17 Feb 2019 13:12:00 +0530


US retail data indicates economy is in recession: Andrew Holland With regards to financials, he said he still likes private banks.
Fri, 15 Feb 2019 14:27:32 +0530


Siddharth Sedani Global events and news flow will influence the market as market players will closely track on any news related to Brexit, US–China trade talks and crude oil prices
Fri, 15 Feb 2019 13:11:15 +0530


Market not overvalued, midcaps and smallcaps are cheaper now: S Naren "Baring the PSU pack, the rest of the market is fairly valued and it is better to invest systematically," said Naren.
Thu, 14 Feb 2019 15:29:20 +0530


Current financial situation fragile, says Uday Kotak "After the ILFS episode, #39;inter-connected exposures#39; is a concern for markets," said Kotak.
Thu, 14 Feb 2019 15:16:55 +0530


#39;Breakdown below 10,700 may trigger short-term bearishness in the market#39; Going forward, 10,700 is expected to act as crucial support for the Nifty, and any fall towards 10,700 may get bought
Thu, 14 Feb 2019 09:38:39 +0530


Expect first six months of 2019 to be extremely volatile: Avendus Capital Once the elections results are out and market takes cognizance of that, the earnings recovery should be pretty strong, said Vaibhav Sanghavi, co-CEO of Avendus Capital.
Thu, 14 Feb 2019 09:28:10 +0530


Neogen Chemicals gets Sebi#39;s go ahead for IPO With this, the total number of company getting Sebi#39;s clearance for the public issues -- initial public offer (IPO) and follow on public offer (FPO) -- has reached to seven, so far in the new year.
Tue, 12 Feb 2019 11:25:06 +0530


Reliance General Insurance files for IPO The IPO will also include an offer by Reliance Capital to sell up to 79.5 million shares, Reliance Capital said.
Tue, 12 Feb 2019 10:30:01 +0530


New Listing: Chalet Hotels lists at a premium of 4% at Rs 291 The initial public offering of Chalet Hotels, which owns, develops and manages high-end hotels in key metro cities in India, was subscribed 1.57 times on the last day of bidding on Thursday.
Thu, 07 Feb 2019 10:03:45 +0530


State-run MSTC files IPO papers with Sebi The initial public offer (IPO) will see sale of 17,600,000 shares, amounting to 25 per cent stake, of the company through the offer for sale (OFS) route by the government, the draft prospectus filed with Sebi showed.
Mon, 04 Feb 2019 13:22:07 +0530


Chalet Hotels IPO subscribed 1.57 times on last day of bidding The initial public offering (IPO) to raise about Rs 1,641 crore received bids for 6,49,07,563 shares against the total issue size of 4,13,26,672 shares, as per NSE data till 1800 hrs.
Thu, 31 Jan 2019 20:06:04 +0530


Chalet Hotels IPO subscribed 28% on second day of bidding The IPO, to raise about Rs 1,641 crore, received bids for 1,16,68,957 shares against the total issue size of 4,13,26,672 shares, according to data available with the National Stock Exchange (NSE).
Wed, 30 Jan 2019 19:18:06 +0530


Subscribe to Chalet Hotels Ltd: ICICI Direct ICICI Direct has come out with its report on Chalet Hotels Ltd. The research firm has recommended to "Subscribe" the IPO in its research report as on January 29, 2019
Tue, 29 Jan 2019 15:42:20 +0530


Chalet IPO opens for subscription: Top 5 things you must know It operates five hotels, including a hotel with a co-located serviced residence, located in the Mumbai Metropolitan Region, Hyderabad, and Bengaluru, representing 2,328 keys, as of March 31, 2018.
Tue, 29 Jan 2019 11:54:54 +0530


Chalet Hotels#39; Rs 1,641-crore IPO opens today; should you subscribe? We recommend investors to Subscribe for the Long term on the issue, said Hem Securities
Tue, 29 Jan 2019 11:29:39 +0530


IPO: Chalet Hotels allots equity shares worth Rs 492.35 cr to anchor investors Chalet Hotels Friday announced a Rs 1,600-crore initial public offering which includes issue of fresh equity and also sale by promoters.
Mon, 28 Jan 2019 22:56:04 +0530


Subscribe to Chalet Hotels Ltd: Choice Broking Choice Broking has come out with its report onChalet Hotels Ltd. The research firm has recommended to "Subscribe" the IPO in its research report as on January 28, 2019
Mon, 28 Jan 2019 13:20:52 +0530

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