Financial Planning by Finstem

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Financial Planning
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Introduction
Contents

• Planning
• Financial Planning (FP)

• FP Process

• FP Concepts

• FP Misconceptions

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Introduction
Planning

• Planning means looking ahead and chalking out
  future courses of action to be followed
• Financial Planning is the process of meeting your
  life goals through the proper management of your
  finances.

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Financial Planning Concepts

• Cash Flow Analysis (Current status)
• Current Asset Allocation Networth (Current
  Status)
• Risk Profiling
• Emergency Fund Analysis
• Protection Planning
• Investment Planning for Goals
• Estate Planning
• Tax Planning
• Monitoring, Portfolio rebalancing Review

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Financial Planning Concepts
a) Cash Flow Analysis
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Financial Planning Concepts
b) Networth Current Asset Allocation
Assets Liability Net Worth
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Financial Planning Concepts
b) Current Asset Allocation Analysis
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Financial Planning Concepts
c) Risk Profiling
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Financial Planning Conceptsd) Emergency Fund
Analysis
Maintain a Fund with 3 to 6 times of your monthly
expenses in cash or near cash investments.
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Financial Planning Concepts

• e) Protection Planning (Life Insurance)
• Income replacement Method
• Expenses replacement Method
• Recommended Product
• Term Insurance

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Financial Planning Concepts
f) Investment Planning (IP) Process A
diversified financial planning strategy will not
eliminate risk or guarantee success. But it does
offer an approach to help protect your assets,
reduce risk and potentially grow assets over
time. ... But overall, your investment
plan should be diversified.
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Financial Planning Concepts
g) Estate Planning Estate planning involves
making plans for the transfer of your estate
after death. Your estate is all the property that
you own. It can include cash, jewellery, cars,
houses, land, retirement, investment and savings
accounts, etc.
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Financial Planning Concepts
h) Tax Planning

• Nothing is certain but death and taxes
• Tax Saving Products
• Sec 80C ELSS, Life Insurance, NSC,PPF,EPF,5
  year FD,
• Home loan Principal repayment,
  SrCSS,NPS
• Sec 80 D Mediclaim
• Sec 24 (b) Home loan Interest

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Financial Planning
Common Misconceptions

• - Financial Planning is for the Rich
• - Insurance Planning is Financial Planning
• - Tax Planning is Financial Planning
• - I am young to think about Financial Planning
• - Confuse Financial Planning with investing

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Thank you

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• www.finstem.com