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Valueraj Associates Private Limited

Personal Associates for your Personal Finances

Financial Planning

Financial Planning

What is Financial Planning?

All of us, in one way or the other, are involved in some kind of planning related to our money matters. It could be expense planning, tax planning or retirement planning. A layman may call this as Financial Planning, but in reality Financial Planning involves this and a lot more. Financial Planning may be defined as – “The process of meeting your financial goals through proper management of your money”. Financial goals can include buying a home, saving for child’s education, going on foreign vacation, planning for retirement etc.

Financial Planning is a process, not a product. This process is standardized by FPSB (Financial Planning Standards Board) and comprises of steps that include (a) establishing the relationship with you (b) collecting all relevant data on your family finances and goals (c) analyzing the data (d) developing the financial plan (e) implementing the plan and (f) monitoring the progress regularly. This in turn leads to achieving your goals on time as and when they are due.

The outcome of Financial Planning process is a ‘Financial Plan’ document. This document spells out a strategy unique to you and your current situation so as to achieve your financial goals. It lays out a roadmap for your future finances and if you follow it, you should be able to live peaceful financial life. This Financial Plan may in turn comprise one or more of sub-plans such as Investment Plan, Insurance Plan, Cash Flow Plan, Tax Plan, Estate Plan etc.

Why should you have a Financial Plan?

Financial Plan provides a vision to you on your future finances. A few but not all benefits are:

  • You will know exactly what is your current net worth and how your assets are spread over various asset classes i.e. debt, equity, real-estate, gold etc.

  • You will know how to utilize your current assets and investments to meet your future goals. If they are not enough, how much should you invest from now on. This in turn helps you avoid impulsive buying of investments in incorrect asset classes.

  • You will know what types of insurances you must have and how much should be the cover for each of them. This in turn helps you avoid compulsive buying of inappropriate insurance policies.

  • You will know what are the tax-saving instruments that are useful to you. This in turn helps you avoid ad-hoc buying of unnecessary instruments for saving taxes.

  • You will get an idea on how your income, expenses, surpluses and corpuses are going to happen in future.

  • You will be able to adapt more easily to any major changes in life as you feel more secure about meeting your financial goals.

What Financial Planning is not?

Here are few things that Financial Planning is not:

  • Financial planning is not a panacea to fix your fickle financial behavior.

  • Financial Planning is not about maximizing your finances. (It is about optimizing them!)

  • Financial Planning is not about achieving highest returns on your investment.

  • Financial Planning is not only for the rich. (It is for everybody!)

How can we help you?

We are Certified Financial Planners by qualification and Mutual Fund Distributors by profession. We provide ‘Financial Planning’ service to individuals and families. However, we provide this service only as incidental to distribution of Mutual Funds.

Hi, How Can We Help You?