In continuation of our wealth management process, creating a financial plan is the core operation. And if you think “I don’t need a financial plan! I am saving diligently through an RD account and investing in mutual funds/ SIPs and ULIP. I believe I am well covered for my future/ post-retirement needs. Financial planning is for people who don’t save/invest.”
Are your investments and savings efficiently utilizing your hard-earned money? Will they yield the best outcomes? Are your investments immune to unforeseen financial market/ fiscal/ economic shifts or personal emergencies?
From our years of experience in the wealth management and financial planning space, we know that the answer to these questions are usually ‘NO’. Ad-hoc investments underutilize your hard-earned money/financial resources and do not efficiently create wealth capable of safeguarding your future.
Financial planning essentially enables you to layout a strategic roadmap to effectively achieve your long-term, mid-term and short-term life/ financial goals. Some examples of goals linked to financial planning:
Short-term goals: Paying off debts, down payments, vacations, emergency funds, liquidity, pursuing a lifelong hobby/ passion, upgrading lifestyle, etc.
Medium-term goals: Children’s education/ marriage, buying a house/ house down payments, supporting ageing parents, starting a business, etc.
Long-term goals: Living a comfortable and secure life post-retirement, Healthcare expenses, etc.
The best financial plans are highly personalized because no two people have the same goals or risk tolerance level. The best financial plans also successfully strike the right balance between savings, investments, insurance, debts, liquidity/ cash flow, health, risks and other aspects of your financial well-being.
Effective, robust and personalized financial planning is indispensable for people of all ages and backgrounds. Here are 8 undeniable reasons why:
*Equips you to achieve your definition of wealth.
*Empowers you to build a contingency fund to meet any unforeseen circumstances in the future.
*Equips you to organize your income/ money prudently and minimize risks.
*Enables you to be confident and stress-free about your money/ financial resources.
*Allows you to see the mistakes you are currently making with your money and fix them, as well as, bring your spending in line with your goals.
*Enables you to see if your goals are realistic and attainable for your timeline.
*Steers you away from the debt trap, chasing returns, ad hoc investments and overspending. Also, ensures that lifestyle inflation does not disrupt the achievement of your goals.
*Empowers you to maintain your standard of living through contingencies and post-retirement.
Financial planning is often equated with investment planning. It is important to note that investing/ investment planning is but a part of financial planning; financial planning includes every aspect of your financial life and well-being.
Financial planning is not a static, one-time thing; it is a dynamic process that necessitates the plans to be regularly updated and tweaked based on changes that may affect your financial well-being (market volatility, personal circumstances, etc.).
Given the need for customization, holistic view, dynamism and robustness in financial planning, DIY financial planning based on information from generic websites is not considered prudent. This is especially the case if you are: super busy with their work and everyday lives/ going through a transition in life/ unable to understand and keep up with the fast-paced financial world/ unable to see the big picture of their financial life. So, the best way to develop your financial plan is to professional help from an expert advisor.
At Prospurts, we use our unique discovery and the assessment process to carefully and comprehensively identifying, analyzing and prioritizing your goals and objectives, and understanding your risk appetite, current financial state and expected future outcomes to build your financial plan.
To build a plan that will help you to quantify your goal and priorities, we will require the information in the attached excel sheet. The more inputs you provide us, the more uniquely tailored your plan will be to help you navigate your financial journey.