Benefits of Financial Planning

Benefits of Financial Planning

  1. The first and most important benefit is financial planning will improve your financial condition over a period of time by best utilization of your income and investments and importantly without compromising on your current lifestyle.

 

  1. Financial plan will act as a Road Map (GPS) in your financial journey as it will give you a direction while progressing in your life and prevent you from taking wrong financial decisions which may take you back by several years thus avoids unnecessary stress.

 

  1. Financial plan will give you a clear idea of what all things you want to achieve (goals) in your life, when you want to achieve them, how much funds you required at that time and how you should start from today for the achievement of your goals. Therefore, financial plan will shift your approach from random investing to target oriented investments.

 

  1. Financial Plan will prepare you better for handling emergencies like accidents,business loss or job loss, illness etc as Emergency fund is the most recommended product in financial plan which prevent you from taking emergency measures like borrowing money or taking extra loans.

 

  1. A smart financial plan allows you to be in complete control of your finances. This allows you to be completely open-minded when you come across an opportunity. Furthermore, if you get any bonuses, pay raises or any additional funds, you will have clear understanding of where to invest the money without requiring to consult several people.

 

  1. Early Retirement is the dream of most Indians but they keep on working till the maximum permissible age or even beyond mainly because they are unsure about the exact corpus required to fund the retirement. The financial plan gives you an idea about the exact Retirement corpus required at different ages and the plan to reach there from your current condition.

 

  1. Financial Plan if followed properly will give you a stress free and enjoyable retired life as the funding provision for all your desires and regular living expenses will be included in it.

 

  1. The financial plan gives you an idea about your saving capabilities and how much of it you are currently using. This means are you living within your financial limits or you are overspending.

 

  1. The financial plan determines have you overburdened yourself with the loans as compare to your income and investments and design a strategy to bring it down within the limits and ultimately to get rid of it completely.

 

  1. Financial Plan will give you an estimation of how your income and expenses will progress in future and how much investible surplus you can generate in coming years and is it sufficient enough to fund all your financial goals.

 

  1. The financial plan will calculate your exact life insurance and health insurance requirement and suggest the appropriate product with the suitable features and at minimum cost. This will shield you from aggressive insurance sellers and save your money.

 

  1. Financial Plan will compare and recommend the right addons like Accidental death & disability Rider or personal accidental policy, critical illness rider or critical illness policy. Thus make your insurance product more worthy and cost effective.

 

  1. Financial plan will prioritise your goals by categorising them into short, medium and long term goals and by giving weightages as per their importance to you. This will improve your possibility of accomplishing all your goals.

 

  1. Financial Plan will decide which investment style is more suitable for you like Highly aggressive, aggressive, balanced, moderate or conservative through a risk profiler and then suggest the suitable investment options.

 

  1. Financial plan will identify your average performing existing investments and change them into high performing assets as well as identify high performing options for your new investments thus increase the overall returns on your investments.

 

  1. Financial plan will compare various investment options on Return, Risk, Suitability and probability to select the right investment option so that your investment goes in high return, low risk and high probable investment option.

 

  1. Financial Plan will reduce your tax liabilities without affecting your returns and help you comply with tax regulations.

 

  1. In case of capital gain tax, the financial plan will help you to take the decision whether to pay taxes or to make tax saving investments by giving you exact calculations to understand which is more beneficial for you.

 

  1. The financial plan ensure that all your assets are distributed among your loved ones as per your wish after you without any hazels.