Financial Planning- a marriage between your goals and investments

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There are arguments against financial planning that say it makes you take life too seriously. Well, unless you are born into the King’s family, we suggest it is rather prudent to take life seriously! Another wrong notion here is about the amount of corpus (read large) you must have, to begin planning your finances. However, the less of a millionaire you are, the more important it becomes to understand and be in good terms with your own money. And with SIPs starting at an amount as low as Rs 500, a smaller corpus will hardly be a problem.

Financial planning is done so that you do not have to stress about finances when faced with certain situations. It involves creating a portfolio for yourself that is in tandem with your financial goals. As your life progresses and priorities change, you would often be required to rethink and rejig your portfolio. The key here is the discipline- discipline in planning and investment. Let’s look at some factors that help you plan your investments better-

1) Let’s define your goals

The very basic concept of financial planning is setting your goals. Unless you know what is it that you are saving for, you would not want to save. Your goals can be long-term like your retirement, mid-term like your child’s higher education or short-term like your marriage. Your goals and your risk appetite will together define your investment patterns and choice of investment vehicles.

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2) What if there’s an emergency?

Financial planning is also essential to combat contingencies. We can’t plan them, but we can plan the money that might be required in such situations. What planning, you say? Your savings account will take care of it? Well, yes that could be one option. But what if we tell you there are better ways with relatively higher returns and same liquidity? Hence, planning.

Tax- the Elephant in the room

Let us not be the ones who run helter-skelter in the last quarter of the FY to just stuff your money in any vehicle that comes to mind, only with the aim of saving tax last minute. Do you realize there’s interest that is lost when you make last-minute investments? A pre-planned tax saving approach will save you the last-minute rush and also have you earn more. Let us make your portfolio tax-efficient!

3) It is a matter of your life

Life insurance is just the type of expenditure that sees maximum procrastination, in many cases. It seems fruitless investing money for a situation that might never arise. But, god forbid, it might just. And then you wouldn’t want your family and dear ones to be left in a lurch. Luckily, the term insurance plans prove to be an effective tool for planning your life cover with minimal premium amounts and considerable insurance covers in an inadvertent situation of death.

At Truemind Capital Services, we believe a slight hand-holding from us can give you the right direction when it comes to financial planning. Being a SEBI RIA, we do not work on commissions from the fund houses. Instead, we work with you. Hence, we can assure you a thoroughly researched and the most unbiased investment advisory. Get in touch with our financial advisers today!

Also Read: What is the best time to prepare for the retirement?

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