Financial Planning is a Goal based planning in order to accomplish various goals namely Buying a dream house/Car, Oversea Vacations, Children Education/Marriage and Retirement Planning. One goes on to say "Proper Planning Prevents Poor Performance." Three stages to be considered in Financial Planning comprise of Wealth Creation, Wealth Accumulation and Wealth Distribution.
Financial Planning process involves understanding requirements, preparing a tentative-cum-final plan for execution followed by periodical reviews and re-balancing.
Financial Planning concept includes building an Investment as well as Insurance Portfolio, linked to Income and Savings. Asset allocation to be done based on the risk profile along with Tax Planning and Estate Planning.
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Normally, income is derived from active sources as well as passive sources. Combining these two one has to allocate expenses in a certain proportion with emphasis on savings. While preparing Financial Plan, existing assets as well as liabilities to be considered for fund allocation to various goals.
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Excellent post!!!
Bravo... Great beginning. Wishing his creative instincts flourish 👍
Very nice and good beginning
Great start
Great Stuff!