Frequently Asked Questions
What is Financial Planning?
Arise, Awake and stop not until your goals are achieved: so aptly said by Swami Vivekananda. That is what Financial Planning is all about. It is about planning your money to achieve your goals within a given timeframe.
Is Financial Planning only for rich?
A common myth which, despite so much written about it, still prevails. Financial Planning is for everyone Rich or Poor both alike. Individual with limited finances need to plan more as proper channelization of their resources will help them achieve their goals. Rich at times have money just lying idle in savings account or in Fixed deposit neither of which give any income. Again comphrensive planning will help them channelizing their finances in the right direction.
Financial Planning starts and Ends with Investment Planning?
Although Investment Planning is a very important part of Financial Planning but it a part of Financial Planning and not the whole Plan. As you can see the Financial Plan Pyramid the base forms Emergency funds then come’s Investment Planning and then comes Investment Planning.
Financial Planning is one time process?
Is our life constant? Nope same way financial planning is an on-going process. Life has a very funny way of throwing googlies to us. One day everything is fine next day we are deep trouble. On going financial plan reviews help in being prepared in any situations as well as being on track to achieve our goals.
Financial Plan cannot be started when you ar young?
Younger you are better it is. As you are starting at young age you have more number of years to achieve your goals. A path is charted on which you need to follow to achieve all your goals along with creating wealth on the way. .Plus power of compounding – earlier you start the more benefits you reap.
ULIPs or Endowment plans are the best form of Life Insurance?
Insurance is about Risk Management. Pure Term plan although do not give your premium amount back but its pure risk management. For a small premium amount you get a larger cover. Note do check the expense ratio of a ULIP plan and Endowment plans and then buy.