The Process of Financial Planning would consist of FOUR BROAD Elememnts viz…..
WEALTH PROTECTION
The Best of the Plans or the Most Nobel intentions too need some level of protection from the uncertainities that life throws at us every day. Biggest enemies that threaten to derail any plans are usually the external factors that are notoriously strong in their nuisance value. These are the factors which have the potential to blow away our most carefully crafted plans, so it becomes imperative to safeguard our plans from such elements.
In case of Financial Plans, typically these factors can be the ones beyond our control such as war, natural calamities, failure of economies etc. However, there is another set of factors such as death, disease, legal issues, business failures etc, which, though unpredictable, can be controlled to certain extent. This is where INSURANCE plays a very vital role.
Life Insurance
Health Insurance
Critical Illness Insurance
Disability Insurance
Professional Indemnity
Vehicle Insurance
Insurance on Property – Fire, Theft, Losses due to natural calamities etc
Travel Insurance
Business Insurance
Workmen’s Insurance
Many further sub groups and arrangements can be described amongst these various groups of Insurance Policies that are available presently.
WEALTH CREATION
The daily time spent on earning livelihood, for most of us, varies from abour few hours a day to about 12 hours a day. It is humanely impossible to work beyond this limit. Wouldn’t we be happy if there was a way of earning round the clock, even when we are relaxing or enjoying life our own way? Wealth Creation component of Financial Planning is there to our rescue.
Earning livelihood is something that occupies the biggest chunk of anyone’s life. Most of us need to do some sort of work to earn our livelihood. It is practically impossible for any individual to work for 24 hours a day to generate wealth. However, a wise way of creating wealth round the clock is to make our wealth work for us, even when we are not working.
RETIREMENT PLANNING
“The more you sweat in peace, the less you bleed in war”… message is very clear, the better preparations we do for our retirement, more comfortable are going to be the Golden years of our Lives.
On an average, we work for about 40 years, to earn livelihood and to ensure comfort for about 20 years of our retirement. Still most of us fail to realize that Planning for retirement is one of the Mandatory goals for each one of us.
One of the most important components of the Financial Planning process is to make a robust Retirement Plan, based on scientific assumptions, taking into account the needs and desires. The process further goes on to formulate a contingency plan as well, for better preparation of the deviations that might be encountered.
SUCCESSION PLANNING
Across humanity, one thread is common and that is the desire to leave behind a legacy for our loved ones. All of us are lucky to have inherited some legacy from our elders, and we all want to reciprocate by ensuring we leave behind a good legacy…. Yet, surprisingly, we often fail to Plan it well. Most of us are ignorant, at times clueless too, about how our legacy is going to happen, thereby losing its worth significantly… at times becoming problematic for the very loved ones for whom we care so much.
Good Planner helps you put in place an appropriate Succession plan that ensures fulfillment of your desires. It even can help you propagate your family values to the Gen Next in most appropriate fashion.
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