Many times, you may have read the word Financial Planning and you may have many complicated definitions as well. Hope you have watched “3 IDIOTS” . When Aamir was asked the definition of machine, he said in simple language “Machine is anything that reduces human effort”. Similarly in simple language “Financial Planning is the process of meeting your life dreams/goals through ...
Financial Planning – A Foundation for Your Future Save money = Lead a better life tomorrow We all want to be rich and well settled in our lives. We need money for such a lifestyle and that too coming in steadily. Financial planning is the best way to reach your financial goals and meet future requirements. So what is financial planning? It is the process of mapping out financial objectives, current & future expenses, assets & liabilities to create a rock solid base for your future financial cash-flows. There are financial advisors, financial planners or financial consultants that help you create an in-depth financial plan. A financial plan is a thought-out path taking into consideration various factors such as current and future financial cash-flows. WHY DO YOU NEED FINANCIAL PLANNING? Each of us has aspirations, buying a car or a house, a grand marriage, hassle free retirement, etc. Each of these life goals has a monetary impact attached to it along with the obvious e...
What is retirement planning? Retirement planning is the process of planning and managing your short and long-term finances to help achieve your financial dreams both during your working years and retired life. It involves analysing your financial objectives, current financial position and expected future cash flowto develop a comprehensive retirement roadmap. Why is retirement planning required? Without a judicious retirement plan in place you run the risk of outliving your savings and not being able to maintain the desired lifestyle in your retirement years. You also run the risk of not being able to accumulate enough corpus for your dependants owing to unfortunate and uncertain events like death, disability etc. Retirement planning helps you determine how much to save today for retirement; how to invest your savings to get the desired returns;how to protect your assets and provide for in case of unfortunate events and howto make judicious use of retirement income...
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