Personal finance planning

1. Personal Finance
Topic:- Personal Financial Planning

2. What is Financial planning?
Financial planning generally involves
analyzingyour current financial
position and predicting short-term and long-term needs.

3. Personal
financial planning
Asset
Acquisition
Planning
Financial
Position
Saving &
Investment
Planning
Liability &
Insurance
Planning
Tax
Planning
Employee
Benefit
Planning
Retirement
Planning
Estate
Planning

4. Asset Acquisition Planning
It includes:-
Liquid Assets
Personal Property
Investment
Real Property

5. Financial Position

6. Saving & Investment
Planning
 As one’s income increases, so does the
importance of saving and investment planning.
 A major risk to the household in achieving their accumulation
goalis the rate of price increases over time, or inflation.
 In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of
return, which typically will subject the portfolio to a number of risks.

7. Liability & Insurance
Planning
 The Risk and uncertaintycan be divided into liability, death, property, health, disability and long term
care. Some of these risks are self-insurable, while most will require the purchase of insurance
contract. Since insurance also enjoys some tax benefits, utilizing insurance
investmentproducts may be a critical piece of the overall investment planning.
 We create liability by borrowing money and the debt must be repaid at some future date.

8. Tax Planning
pay taxes, but whenand how much.
Understanding how to take advantageof the tax
Most modern governments use a progressive tax
Government gives incentives in the form of tax deductions

9. Employee Benefit
Planning
while deciding upon insurance, retirement and investment products, these
benefits should be taken care of by a person for an effective management of
one’s investments.
pension
health insurance
provident fund

10. Retirement Planning
Retirement planning is the process of understanding how
much it costs to live at retirement, and
coming up with a plan to distribute assets to meet any income
shortfall.

11. Estate Planning
 “Will” is a legal declaration of the intention of the testator with respect to his property which
he/she desires to be carried into effect after death.
o Making a “Will” is an essential part of retirement planning.
o It involves planning for the disposition of one's assets
after death.

12. Thank You!

13. A
Presentation
Siddharth Nair