Financial Planning

Financial planning is a systematic way of organizing one’s personal finances with efforts made for optimizing between the assets, the liabilities and the cash flows .It works towards ensuring that all goals are met. It is a dynamic and continuously evolving process. It requires customization. The various facets of an individual’s/family’s financial as well as behavioral needs (with respect to money), should be evaluated to draw a complete picture

It is a Science: uses the mathematics of numbers to ensure that the milestones targeted happen as planned.

And an Art: is a creative process, it has a stamp of individuality. One shoe does not fit all. “Horses for courses” are more like it.

Financial Planning can be explained through a simple 3 step process:

  • Risk control
    • Identifying the risk-exposure to our life, health and assets and limit it by transferring risk.
  • Wealth creation
    • Investing intelligently with an eye on tax efficiency
    • Prioritizing the goals/ dreams and achieve them as planned
  • Wealth transfer
    • Ensuring that the assets built in one’s life get transferred to the beneficiary as envisaged

In effect, financial planning encapsulates goal planning, budgeting, preparation of will, evaluation and review of investment and insurance portfolio, optimization of investments made, creation of contingency funds, review of extent of loan being shouldered, assessment of appropriate risk cover- amount as well as product wise, ease of operations. All of this is done with the tax perspective in mind.