FINANCIAL PLANNING

Insurance need Analysis

Insurance is an important element in creating a sound financial plan for you and your family. It is extremely important that every person, especially the breadwinner of the family should ensure that their family’s needs will continue to be met & his family’s quality of life does not undergo any drastic change in case of an unfortunate event.
Insurance planning doesn’t end with Life Insurance alone, it extends to planning for your health, property insurance, etc. We will help you to calculate the required amount of cover that will protect you and your family in different ways against the cost of accidents, illness, disability, and death

• We educate you about the products and the best possible cover to meet your insurance requirement
• We customize different insurance products that suits the best according to your need
• We offer optimum level of service to the policyholders / insured

Choosing the right level of coverage

Income Replacement Value

This is one of the basic methods of insurance calculation and is based on your current annual income.
Simply put,
Insurance needs = annual income * number of years left for retirement.
Suppose you are 35 years of age and you are going to retire at 60 with your current annual income of Rs 4 lakhs. In this case your insurance cover requirement equals Rs 4,00,000 * 25 = Rs 1,00,00,000.

Needs Analysis

We will help you to assess your needs — and the needs of your loved ones — and make a calculated assessment.
While assessing, the most critical factors are the number of dependents you have and their needs.

Other major factors to consider are:

• Loans
• Kind of lifestyle you want to provide to your family
• Provision for non-working spouse who would no longer get an income
• Child’s education
• Child’s marriage
• Providing for financially dependent parents
• Other needs

Retirement Planning

The longest of journeys start with a single step. Planning for retirement is one long journey but a resolute and systematic step-by-step approach will make your retired life a lot comfortable. Planning properly for your retirement will have a profound impact on your life style that you will live after you retire.
Why to depend on anyone while you retire… Retirement is the time when you would like to spend your days doing what you love — travel frequently, live leisurely, gift your loved ones, etc, but you can only do so if you are financially prepared.
Another important reason why you should start saving for retirement is the increasing Cost of living and medication which will play a vital role on the life style which you desire post retirement.
Be independent by all means with proper allocation of funds at the right time.

How do we help you for the same?

• Analyze your current income & expenses
• We will have a discussion with you about the life style that you want post retirement, increasing cost of living, medication
• Prepare budget & forecast the cash flow that will be required at the time of retirement
• Budget would include the money to be invested now to get a proper retirement corpus.
• Risk profiling to know your risk tolerance level
• Asset Allocation which best suits your needs

Children’s Education Planning

It’s the dream of all parents to facilitate the best possible upbringing for their child/children and assure the best of future for them. As a parent you want your child to get the best possible education which he/she deserves. You do not want the lack of finance to be a roadblock in providing for the best education for your loving child.
The cost of education is increasing faster than the inflation rate which we normally face in case of our household and other expenses. Therefore, it is very important to create a proper roadmap for ensuring that you get the enough funds for your child’s higher education.
Most parent save for their child’s higher education but saving alone may not be enough. You need to ensure that you save appropriate amount regularly to accumulate the required fund in future and invest those saving into the proper investment vehicle.
There are number of things which needs to be considered while planning for the higher education of a child.

• Cost of higher education
• Inflation
• Projected cost of higher education in future
• Existing saving capacity
• Understanding the various investment vehicles and its suitability

How do we help you for the same?

We help you in crafting a near to perfect plan for investment required for your child’s higher education.
We help you in,

• Evaluating the current costs involved for these goals
• Analyzing the future cost of the goal considering inflation
• Finding out the required amount of investment to be done to achieve the goal.
• Selecting the best portfolio mix based on time horizon left to achieve the goal
• Reviewing of the investments and goal achievement scale.
• Coming out with the alternative ways to ensure that you get enough required funds to ensure your child’s higher education.

Children’s Marriage Planning

It’s another big dream of all parents to give the gift best wedding for their child. The amount to be sent on the wedding depends on many factors like demographics, cast, culture etc. This expense cannot be ignored and avoided by any of the parent at least in our country where the wedding is considered to be the responsibility of the parent.
We come across many such instances where parent need to either borrow heavily or spends almost all their life savings just for ensuring the wedding of your son/daughter becomes most memorable. Again nowadays due to social obligation, you may not ignore or cancel many expenses related to wedding which otherwise would not have been required.

Most parents have big dreams for their child’s marriage. One need to plan well in advance for creating a sufficient fund for the marriage of their children. Also this cost of marriage keeps on rising due to the inflation factor.

There are number of things which need to be considered while planning for the higher marriage of a child.

• Cost of Marriage.
• Inflation.
• Projected cost of higher education in future.
• Existing saving capacity.
• Understanding the various investment vehicles and its suitability.

How do we help you for the same?

We help you in crafting a near to perfect plan for investment required for your child’s marriage based on your requirement and financial condition.
We help you in,

• Evaluating the current costs involved for these goals
• Analyzing the future cost of the goal considering inflation
• Finding out the required amount of investment to be done to achieve the goal.
• Selecting the best portfolio mix based on time horizon left to achieve the goal
• Reviewing of the investments and goal achievement scale.
• Coming out with the alternative ways to ensure that you get enough required funds to ensure your Child’s Marriage.

Goal Based Investment Planning

Apart from retirement and child’s future there are many other dreams in our life which requires proper planning to ensure the successful achievement. Many other important dreams which may require the considerable amount of money to be spent on, also need to be planned well.

The examples of such dreams are,

• Buying Home
• Buying a Car
• World tour with family
• Buying a weekend home

There are many other dreams which are not listed above but may need the considerable amount of money in future. Creating a well crafted plan may be the first step towards converting your dreams into the goals and then into the reality in future.
We help you to identify your dreams and converting those dreams into the numbers along with the proper investment plan to achieve those numbers in time.

Comprehensive Financial Planning

Comprehensive Financial Planning is ideal service for those who are looking forward to do personalized and integrated financial planning for all their financial goals like Retirement planning, Insurance planning, child education & marriage planning, buying home etc. This is a holistic financial planning service which takes into consideration your current financial condition plus future requirement and draws the complete road map that help you in achieving all your financial Goals.

Once the plan is created, with the help of our platform, we also assist you in execution and review of your Financial Plan on regular basis.
Services offered:

• Cash flow statement
• Networth Analysis
• Insurance need Analysis
• Risk Tolerance and Risk Profiling report
• Investment planning for all your financial goals
• Detailed Post retirement cash flow
• Your existing portfolio Review
• Financial Product recommendation

We also provide you the value added services like

• Online Investment Platform
• Free online portfolio tracking reports
• Various maturity & Renewal alerts

Once the financial plan is created and implemented, we also assist you in regularly reviewing your financial plan and its progress and we also suggest you the necessary changes required into the portfolio and plan to ensure the successful achievement of your financial goals.

What is financial planning?

All of us require a sound financial planning. Many people think they do, but they recognize the same when it gets too late-and then they don’t have the means to achieve their life goals.

Financial Planning is the process of creating the ideal blueprint to reach your future life goals. Every human being is different in terms of demographic, needs, income, expense, lifestyle etc., but everyone has few very important dreams for one’s self and one’s family which require financial resources to get them fulfilled. The process of creating the financial plan is a scientific way of creating a roadmap to achieve your life goals by channelizing your income and saving in a proper way.

Well crafted financial plan converts your dreams into the goals and goals into reality.

Benefits of Financial Planning

• Helps monitor cash flows and reduces unnecessary expenditure.
• Enables maintenance of an optimum balance between income and expenses
• Helps boost savings and investments
• Helps reduce tax liability.
• Maximizes returns from investments
• Creates wealth and ensures better wealth management to achieve life goals
• Secures your retirement life (financially).
• Reviews insurance needs and therefore also ensures that dependents are financially secure in case of unfortunate event of death or disability of earning member.
• Lastly, it also takes care of proper succession planning.

Financial planning can help you achieve peace of mind since:

Identifying your financial goals enables you to focus your investments towards achieving those goals.

Financial Planning Process

• We will understand all important aspects of your financial life
• We will analyze the data and prepare a draft financial plan
• We will discuss the strategy with you behind the draft plan and then finalize it

The Financial Planning Process

Financial planning consists of a series of steps. There are various areas which need to be addressed step by step to create the financial plan. This section examines each of these steps in detail.

Step 1 : Identify your current financial situation.
We will gather all information from you about your sources of income, debts, assets, liabilities, etc. This will provide us a true picture of your current financial situation.

Step 2 : Identify your goals
We will help you to identify your goals and list out the current and future family goals. We will have a discussion with you to prioritize each goal by establishing consensus and put a time period against each. This exercise will help you to differentiate short term and long term goals, and how much money you need for each goal.

Step 3 : Identify financial gaps
We will identify the financial gaps from where you stand financially, and where you want to be, i.e., how much you will have and how much you need to fulfill various goals.
Identifying financial gaps are important, because, it helps in identifying the right asset class and investment product to cover the shortfall.

Step 4 : Prepare your personal financial plan
We will review various investment options such as stocks, mutual funds, debt instruments such as PPF, bonds, fixed deposits, gilt funds, etc. and identify which instrument(s) or a combination thereof best suits your needs. The time frame for your investment must correspond with the time period for your goals.

Step 5 : Implement your financial plan
Once the final plan is discussed and approved by you, we will help you to implement you your financial plan. Successful implementation is the key to the success of financial planning.

Step 6 : Periodically review your plan
Financial planning is not just one-time activity. A successful plan needs serious commitment and periodical review (once in six months, or at a major event such as birth, death, inheritance). You should be prepared to make minor or major revisions to your current financial situation, goals and investment time frame based on a review of the performance of your investments.

Focusing your investments ensure that you create wealth through timely and appropriate investments and also protect it.

Creating Wealth ensures that you are financially secure and on track to achieving your financial goals.

Financial security means you are prepared to overcome expected and unexpected ups and downs that life throws at you, such as sudden illnesses, retirement, etc.

Lastly, financial planning, when properly done, ensures that your investments are inflation proof.

Building Blocks of Financial Planning

We help you understand the basic building blocks of sound financial management–the steps you need to complete, or at least consider, before you begin an investment program

1. Contingency planning
2. Insurance planning
3. Investment planning
4. Retirement planning

One might be wondering why the reverse order? Just as mentioned we have to build the foundation and then move upwards. The foundation starts with contingency planning and then you gradually move up.

The first two blocks: contingency planning and insurance planning is known as risk management. Also in layman terms, it is the foundation of a good financial planning. Once this is in place, you are not worried as it takes care of all your emergency situations (contingency planning) as well as your insurance requirements (that is your health insurance, life insurance and other insurance).
Once your risk is managed, you can then safely move on to the higher levels to plan for your goals. The next two levels are investment planning and retirement planning collectively known as goal planning.
Your financial plan entirely depends upon how much effort you are willing to put in. This means not just having a good hold on the details of your income and expenses, assets and liabilities, but more importantly on the following items:

• Time Horizon and Goals
• Risk Tolerance
• Liquidity Needs
• Inflation
• Need for Growth or Income