A financial plan is the bridge between your today and tomorrow
Make a list of goals that you want to achieve – purchase of dream home, children’s higher education & marriage, international vacations, new car every five years, pursue your hobby / passion retiring in a farm house – the list can be endless. Do not forget to prioritize them!!!
Take a stock of your existing investments and figure out how much surplus you will generate during your working years by projecting your income and expenses. Do not forget to include investments provided by your employer such as EPF, NPS, Super Annuation and Gratuity.
Your risk profile plays a huge role to decide how exactly your money will be invested. Take our psychometric test and figure out your risk profile. From your risk profile your base asset allocation will be derived which forms the foundation of your investment strategy.
We take your base asset allocation and change it for every goal depending on how near or far they are. Mellow down your asset allocation for goals that are just round the corner and make the asset allocation aggressive for goals which are in the distant future.
Distribute your current investments and future savings among various goals taking in to consideration the applicable asset allocation. As you move closer to your goals, your money allocated for the goal will gradually be shifted to less risky assets to reduce volatility.
Your financial plan is not for a month or year but for few decades. So you have to be ready to deal with any unfortunate event and not let such events impact the future of your family. This will be done by getting the right amount of life and medical cover for you and your family.
Financial planning gives you the much needed direction and discipline to manage your money. The purpose of such an approach is not to give you instant gratification but rather build your financial health over time for the better.