Financial Planning The NEED of the TOUGH TIMEByKaushal Mandaliakaushal@insightHR.co.in+919825300447
Stock Market Down by 70% The TOUGH TIME Investors lost their Confidence.Higher Interest Cost for Corporate Job CUT : Further Leads to Negative Impact on DEMAND Uncertain TIME, Uncertain FUTURE.
What are the EFFECTS?1. Portfolio Value at Rock Bottom if Invested most of the money in Equity Market.2. No Fresh Demand is Creating through IPO or Equity NFO.3. Supply is Higher than DEMAND hence, Increased possibilities of Stock Market Going Down further.
Do you NEED to WORRY? If your Portfolio is UNSTABLE You should be worried If Your Portfolio is STABLE Sit and Relax.
Unstable Equity / MF / Debt Portfolio and Others Emergency Equity Fund Market Mutual Fund Insurance Debt Instrument Stable Portfolio Emergency FundInsurance / Protection You can be WORRY-FREE if your Portfolio is STABLE
THREE Parameters to CHECK… GOAL or OBJECTIVE Must be linked with Emotions and Not LOGIC only.. RISK APPETITELets define this Clearly, Don’t Expect 100% Return at 10% RISKTIME HORIZON•The Shortest TERM possible to get RETURN is onlyCALL Money Market•Define Time Horizon CLEARLY
GOAL or Objective of INVESTMENT Financial Planning Protection InsuranceChild’s education and marriage Creation of wealth, so the best can Investment be provided to the family Money for emergencies An independent retired life Legacy for future generations
Head + Heart = Buying DECISION STRONG Emotional Connect Rational Thinking Emotions Question Guaranteed Return of 10% or Non Guaranteed Return of 10% Denial Nothing is going to happen to me FEAR God Forbid Financial LOGIC Returns, Economic Conditions, Concern How much is enough to Ensure Product Comparison Financial Security for my Family? Love and I love my wife and children very much.Recommendation by Advisor, Affection Friends and Relatives Determination I want my dreams for my family to be Ensured, regardless of what happens
Risk Appetite“Only Dead Man Does not have any Worry orChallenges”……. AnonymousSimilarly, If you don’t have money, youhave ZERO risk of losing it…Risk Appetite is determined by “Howmuch you are willing to give up withyour investment if possibility arises”Hence it largely depends on..Returns Fixed Returns or Market LinkedLiquidity With Lock in Period or Without
Time HorizonShort Term Investments (1 Month to 2 Yrs)Avoid Market Linked and Prefer Fixed Return SchemesLong Term Investments (More than 2 Yrs)Must be Goal Oriented (Use of Head and Heart both)Can be Market Linked but having Diversified Asset Allocation
Protecting your Risk GOALS and DREAMS Management against Any Estate Planning UncertaintyUncertainties Covered Whole Life Policies•Pre-matured Death MWP Act•Accident Nomination•Disability Absolute Assignment•Sickness INSURANCE Retirement Planning and Employee Benefits Choice of Asset Tax Planning Allocation (Debt, Pension Schemes Immediate Equity, Market Section 80C Deferred Linked Returns with Section 80D Super Annuation Capital Protection) Tax Free Maturity
Financial Independence.. Stable Portfolio Thoughtful Planning Retirement Emergency Planning FundsOther CriticalInvestments Illness Financial IndependenceDisability Savings Education Income Funds Protection upon Death Accident & Hospitalization
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