Personal Financial Planning Is A Way Of Life
When you want to construct a house, you approach an architect to create a plan before you start construction on the purchased land. Mostly, homeowners prefer to hire both architect and a home designer. Buying a house or a flat is one of the vital decisions of one’s life. All you need is a blueprint, the estimated construction cost and the time required to complete the construction. Thereafter, you start construction based on blueprint. Likewise, when it comes to your personal finances, you should consult a professionally competent Certified Financial Planner for a detailed Financial Plan. As Certified Financial Planner in Kolkata, we focus in closing working with our clients in order to implement the action plans which forms a part of the personal financial planning processes.
Likewise, it would make sense to relate the following:
- House building blueprint with your life’s Financial Plan
- Construction of building with investing or investment strategies and
- Construction time with time-frame of your financial goals.
You can’t ignore your Financial Plan while investing for your specific financial goals. You must know your types of goals, goal amounts, goal time-frames, risk profile, personal factors, inflation, taxation and other macroeconomic factors. Only then suitable solutions at different stages of life can be arrived at. Financial planning is linked to our present and future. Personal financial planning processes lead to solutions for unforeseen situations in life. It helps to make things certain (to an extent) among uncertainties. As Financial Advisor in Kolkata, we intend to know your past, understand your present situation and project your future requirements. Our intention is to professionally guide you towards peace of mind.
Our life goes through various changes. Through review of financial situations you can solve your problems. Like accounting for skyrocketing inflation, longevity risk, interest risk, macroeconomic and personal factors, etc. at regular intervals help you to stay on track.
“The greatest blunder in personal finance is to act before financial planning.” – Uttam Kumar Sen
Personal Financial Planning covers the followings:
- Current financial situation analysis
- Risk Profiling and interpretation
- Cash flow analysis and planning
- Tracking net worth
- Contingency planning
- Insurance planning
- Debt planning
- Investment planning (Goal based)
- Income tax planning
- Estate planning
- Children future planning
- Retirement planning
- Other goal planning
- Personal financial awareness
- Nurturing relationship with money
Personal Financial Planning is a way of life
Common Mistakes in Personal Finance:
- Not preparing family budget.
- Not maintaining cash flow statements.
- Failing to assess risk profile.
- Failing to choose suitable financial solutions.
- Falling prey to sales pitches of sales persons.
- Irrational investing due to untimely fear and greed.
- Not understanding the impact of time value of money on your financial goals.
- Too much of debt burden.
- Failing to maintain contingency fund.
- Having ornamental life insurance policies with huge premium payouts.
- Not reviewing Financial Plan at defined intervals, etc.
If you want to reach your destination, you must have a road-map. If you fail to do so, you may not reach your desired place where you were not supposed to reach. As SEBI Registered Investment Advisor in Kolkata, we believe that Financial Plan is your personal financial road-map.
How can you start investments, take insurance coverage, maintain contingency funds, make tax and estate planning without having a Financial Plan?
You’re a unique person. Your requirements are subjective as well. You must be aware of what you need, how much you need, when you need and why you need. You may know when and why you need. But you may not know how much you need and how to get there. A Financial Planner and a SEBI Registered Investment Adviser considers both the ever changing macroeconomic factors and your personal factors while writing a plan for you. You should have clear vision to take informed financial decisions. Unbiased solutions may never come from Insurance Agent, Mutual Fund Distributor or Stock Broker, Bank Relationship Manager, etc.
Consult a professionally competent Financial Advisor to develop an understanding why you need to have a rational Financial Plan and tailor-made investment strategies for every life stage.
