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FINANCIAL LIFE PLANNING

Financial Planning is defined as “Financial Planning is the process of meeting life Goals through the proper management of finances.”


One of the important and critical steps in the process of Financial Life Planning is Goal Setting.  It needs holistic approach to discover aspirations as well as need to adopt the life style which will be sustainable in longer term. One needs to think about non financial things affecting the lifestyle. It is about simplifying the lifestyle, spending quality time with family, changing own habits, nurturing the hobbies. During this process one understands money and the meaning. Money no more remains the end but becomes means to leave a sustainable and fulfilling lifestyle. Other financial goals can include buying a home, saving for your child’s education or planning for retirement. Financial Planning is important as each financial decision affects other areas of finance.


Financial Planning helps to organise finances, improve cash flow, lower personal income tax, plan for retirement, plan for children education, improve performance of the portfolio, enough insurance with minimal cost etc.


In India stock broker, insurance agents and mutual fund distributor etc act as Financial Planners. Most often they are more interested in selling a particular product under broader spectrum of Financial Planning. However, Financial planners is the person who helps to set and achieve their long-term financial goals  through investments, tax planning, asset allocations, risk management, retirement planning and estate planning etc. He may consult various intermediaries for certain matters, but he the one who provide an integrated service to the client to help him to achieve his goals. Bases on the fees there are three types of Financial Planners viz. fee only planners, commission only planners & fee and commission planners.


The financial planning process consists of six steps as below

  • Establishing the relation
  • Data Gathering and Goal setting
  • Identification of financial problems
  • Preparation of written alternatives and recommendations
  • Implementation of agreed recommendations
  • Review and revision of the plan

Various services covered under Financial Planning are, 

  • Investment planning : Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment  and spending
  • Child Education and Marriage : Make necessary provision considering inflation for education fees and marriage expenses.
  • Retirement Planning : Planning to ensure financial independence at retirement.
  • Risk Management and Insurance Planning : Managing cover for Life Risk, medical expenses, householder and vehicle risks etc,
  • Cash flow and Liability Management : Maintaining and enhancing personal cash flows through debt management and lifestyle management.
  • Tax Planning : Planning for reduction of tax liabilities and freeing up of cash flows for other purpose.
  • Estate planning : Planning for intergenerational transfer of wealth and management of trust, writing of wills etc.

Juzer Gabajiwala In this article, we will explain the categorization of debt funds in brief and its features impact.
Thu, 19 Apr 2018 11:20:20 +0530


Pankaj Mathpal Dynamic asset-allocation funds factor in market valuations before investing in various assets.
Tue, 10 Apr 2018 09:43:00 +0530


Does investing in sectoral equity mutual funds make sense? With sector funds, the timing of the investment and the health of the concerned sector is very crucial.
Mon, 09 Apr 2018 09:57:49 +0530


Mutual Fund Day: Family Financial Plan series Financial management is not just about how much money you make, it is also about how much you save, how hard you make it work for you and how many future generations you keep it going for. Mutual Fund Day – Family Financial Plan Series chronicles different financial planning case studies of individuals with unique financial background selected from different parts of India.
Sat, 31 Mar 2018 15:54:48 +0530


Do-it-yourself investors, go for direct plans for greater wealth creation As direct plans do not incur distribution expenses, the savings made in total operating expenses remain invested with the fund, which then start generating returns.
Wed, 28 Mar 2018 10:58:05 +0530


Mahesh Patil Retail investors are showing slight concern with market correction and going forward we may see 20% drop in flows compared to last 6-month average, Mahesh Patil told CNBC-TV18
Tue, 27 Mar 2018 11:16:29 +0530


Sunil Subramaniam Watch the interview of Sunil Subramaniam, CEO of Sundaram Mutual Fund with Prashant Nair and Ekta Batra of CNBC-TV18, where he shared his readings and outlook on the fundamentals of the market, and specific stocks and sectors.
Tue, 13 Mar 2018 12:06:12 +0530


Nilesh Shah Market’s downside will be capped by earnings and economic recovery cycle. But the upside could be capped due to political uncertainty as well as possibility of hiked interest rates in the US, Nilesh Shah of Kotak MF said.
Mon, 12 Mar 2018 11:02:06 +0530

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