Financial Planning Series #2

Financial Planning Simplified

Hello everyone!

Welcome to the second part in the knowledge series on basics of personal financial planning. The concepts, facts and advice are mainly based on recommendations by certified financial planners and experts.

Financial Planning is an often neglected area mainly on account of a busy Job or Business engagements. There is often less time/energy available as financial planning requires some focussed time.

In this section, I will try to explain financial planning in a very simplified manner.

Before making a plan, people ask what is the return i get on the investments and compare that with sock market returns to decide!

However, financial planning must start, with a rock solid “foundation”, like every stable building. Post that investments can be planned in more risky assets.

What is that “foundation” in financial planning?

In Spite of such negativity around Life insurance, do you know how beneficial investing in Insurance products can be to lead a worry free and comfortable life?

Yes, financial planning must start with Life insurance.

Here is a graphical representation to illustrate this in a better way

As you can see, there are four basic life requirements that need to be ensured before next level of financial planning

1) Family Income Protection

2) Child Education & Marriage

3) Retirement Planning

4) Health Protection

Once the above basic “foundation” is laid then the other investments may be planned such as debt instruments, mutual funds and stocks. It may be noted that the “foundation” may need revisiting and strengthening year on year based on income levels, to sustain & also improve the standard of living.

More on advantages of Life Insurance in the next post...

For more details on available options, you may contact on below given details

1) call / sms on the phone number: 7008302525

2) email id: solutions@technize.in

Disclaimer:

I am Government of India (IRDA) certified, trained & working as Life Advisor at Kotak Life.

I will be discussing with the Prospect his/her needs & aspirations and advising on the recommended solutions for Life Insurance and if necessary will be setting up appointment with Kotak Experts for product options & selecting right product.

The discussion usually will not be more than 15-30 minutes. It involves analysis of your needs, explaining the basic concepts of life insurance to benefit from, concept of "Human Life Value" as recommended by IRDA.

Presently this is service is free of cost