Welcome to Beyond Money

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.

Joydeep Sen If there is an open-ended bond fund that is passively managed with maturity roll-down, investors may opt for it to gradually reduce interest rate risk
Fri, 22 Jun 2018 09:54:53 +0530


How you can help your parents sort their investments systematically Your parents have done their best to secure your future and well-being at every step of the way. It is time you take responsibility for their future wellbeing too.
Thu, 21 Jun 2018 09:51:57 +0530


4 important tips to make the most of close-ended mutual funds Close-ended mutual funds do not have any track record and aren’t open to investors post their initial offer period
Tue, 12 Jun 2018 08:21:17 +0530


How to fund your child’s education through mutual fund SIPs When parents start investing early through SIPs, they allow more time for their corpus to grow. Also, monthly outgo in the form of SIPs is lower than those investing late for the same amount of corpus
Wed, 23 May 2018 08:41:14 +0530

Video Box