Financial Planning

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Financial Planning

• Your Financial Journey Made Easy

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Synopsis

• Family Financial Planning Insignificant? Think
  again!
• Money Management
• Private Wealth Management Why You Need It?
• Corporate Retirement Plans
• Corporate Retirement Plan Win-Win Game
• 401(k) Plan Management

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Family Financial Planning Insignificant? Think
again!

• The first step is to discuss the financial
  situation with your house members, including
  kids. Its helpful to teach them the value of
  money in their early years, to set them up to be
  good planners as they grow.
• For distant future expenses like owning a
  house/farm or college fee for your children, get
  SIP (Systematic Investment Plan) or mutual fund
  plans. Also, do not forget to avail a
  retirement/pension plan, which will also provide
  you tax rebate under 401(k).
• Create an excel sheet and list all the assets,
  liability and account number on one page.

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Money Management

• The first step to managing your money well is to
  make a budget. When you are planning your budget
  dont forget to plan for the seasonal items e.g.
  birthdays, anniversaries, and holidays
• Set up an emergency fund by saving 10 of your
  paycheck until you have six to eight months worth
  of expenses saved in case of an emergency.
• Another good way to manage your money wisely is
  having a solid plan to pay back debt. Make a
  list of everything you owe, and start from
  smallest to largest in re-paying the debt.
• Ensure that whatever you purchase, or whatever
  service you are paying for makes sense for your
  financial needs.

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Private Wealth Management Why You Need It?

• When a financial expert becomes your private
  wealth manager, they can guide you to the correct
  path of high yield models. Since their studies
  are based on vast data or a systematic research,
  the amount of risk you can expect is next to
  zero. Private wealth managers help you achieve
  your financial goals within a short-term,
  medium-term or a long-term timeframe, whichever
  one suits your needs best. The business advice
  they offer can help you decide the best current
  investment plan, that is in accordance with your
  budget and preferences. Basically, they design a
  portfolio and advise you to invest a specific
  percentage or your money for a certain time
  period. You can trust the strategies that they
  implement because the advice is coming from an
  industry expert, who happens to come from a big
  investment banking house or wealth management
  corporation.

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Corporate Retirement Plans

• A defined benefit plan uses a formula to
  calculate the employees retirement benefit
  according to how long they were employed and what
  their salary was, making it the employers sole
  responsibility to fund this type of retirement
  plan.
• Then there is the employee contribution plan,
  in which the employee elects to have a set amount
  of their earnings deposited into their retirement
  accountwhich is in the employees name however,
  annual contributions are limited by the federal
  governments regulations.
• Another type of employee contribution pension
  plan is the 401(k).

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Corporate Retirement Plan Win-Win Game

• Corporate Retirement Plans are similar to
  personal retirement plans. The only difference is
  that its a formal agreement between employees
  and the company or with the employee union with
  the company. The company takes care of its
  employees retirement benefits by taking a share
  from your earning and adding a percentage of
  their own to create a corporate pension scheme.
  These plans are typically formulated by taking
  into consideration the employee's designation,
  length of employment and the amount that they
  contributed to the company.

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401(k) Plan Management

• This type of retirement plan is employer
  sponsored, and permits the employee to contribute
  their pre-taxed dollars into an investment plan
  that is set up for their retirement. For those
  without knowledge of investing, they may want to
  seek the advice of a professional financial
  investment advisor about how to best invest their
  401(k) dollars.
• It can get rather costly to hire someone to
  manage your 401(k) at anywhere from 0.15 to 0.7
  annually. That may not seem like a lot of money
  at first, but you also need to consider the cost
  of expense ratios for an active fund accounts and
  now suddenly it is a lot more money. This extra
  cost could prove worth it, if there was the
  promise of boosted returns however, with
  financial investments there are no real
  guarantees.

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