Financial Planning includes:
1) Investment-Planning
Education Planing
It is done to increase your financial resources. Once you have enough money to take care of emergencies, you should start investing your money. It includes risk profiling, creation of investment portfolio, assets allocation, creation of wealth, periodical review and re balancing.
2) Tax-Planning
It is done to reduce tax liabilities. It includes: calculating your gross total income from all the heads of income, computing the total tax payable and then minimizing your tax by adopting certain tax saving schemes and a right mix of investment options.
3) Education-planning
It is done to arrange funds for higher education of self or the children.
4) Cash-flow-planning
It includes analyzing the present income and expenditure and then drawing a plan to maintain a regular flow of cash to meet daily expenses.
5) Business-Succession-planning
It includes systematic and affordable transfer of a closely held or a family business to the next generation.
6) Insurance-Planning
It is done to take care of the Dependants and financial losses
7) Children’s-future-planning
It is done to secure your child’s future by arranging funds for his higher education and marriage. It should be started as soon as your child is born. If we assume the inflation rate to be 5%, then the degree which cost RS 2.5 lacs today may cost RS 6.3 lacs after 17 years
Retirement-Planning
It is done to secure your life after retirement by arranging funds for your post retirements needs and maintaining your living standard. Generally people are not concerned about there retirement at an early stage of there career. But in order to meet future expenses and maintain the same living standard, it is advisable to start planning as soon as you reach the age of 25.
Interactive Whiteboards Lessons – Parts Of Financial Planning
Interactive Whiteboards Lessons: Parts of financial Planning
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