Concise Financial planning helps you answer important ‘life’ questions like -
How much wealth do I need to have, say 15 years from now, when I retire, to maintain my current lifestyle?
How much money is required for my children’s higher education, say 10 years from now?
I have a huge liability in the form of payment for my housing loan over the next 10 years. Would I be able to save enough for meeting my retirement goals? What do I need to do to ensure that?
I am fed up with my job and would like to pursue other career options which may not be as remunerative but which gives me immense satisfaction… will that impact achievement of my financial goals?
It is important for each individual to draw up a set of financial goals and put numbers to it. ‘Concise Financial Planning’ helps you do this. A ‘gap assessment’ is required to see how your wealth or your current investment portfolio in various asset classes will grow to help you meet your ‘goals’. If there is a ‘negative gap’ i.e your current wealth or investment portfolio value is not enough to meet your financial goals, a ‘Financial Plan’ is required to create a roadmap that helps in assessing the incremental savings required over a period to satisfy the financial goals. This involves balancing cash flows on a regular basis & investing surpluses at right time in the right asset class, in a systematic way to build a corpus for achieving your financial goals such as retirement income, purchase of a new house/car or for your children education and marriage.