Financial planning has become a buzzword these days. Most of the financial intermediaries worth their salt call themselves financial planners and provide financial planning as a service in their basket of offering. The fact remains that financial planning service offerings are a major tool for them to generate income. But recommendations of products to investors, say for instance mutual fund schemes, are often biased in favor of their associations and this helps them earn higher commissions from their principal fund houses. Needless to say, that although not all financial planning firms follow a biased approach or practice in an unethical way, however there certainly is a conflict of interest in their functioning. Investment is just one part of financial planning. Financial planning is all encompassing and also includes increasing your savings, reducing your unnecessary debt, creating an emergency fund, buying family protection through insurances, and planning all your life goals including your retirement.
All the above services boil down to meeting your four financial needs. If someone is not able to identify and help you service these four financial needs then it's advisable to look for an alternative financial planner. It’s not just about identifying the four core needs but also quantifying them and choosing appropriate products that would help them overcome the fear of not achieving those needs. Further, in this story we would highlight the four most common financial needs and also at the end, would suggest how to achieve them.
Financial life stages
Now most of you may be losing your patience to know those four prime financial planning targets. Bear with me for a while. Before knowing what those targets are, it is important to understand what are the different stages in life and how these needs are associated with them.
Up to 25 years of age
Denne historien er fra November 25 - December 8, 2019-utgaven av Dalal Street Investment Journal.
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Denne historien er fra November 25 - December 8, 2019-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
