The first thing that is required is a substantial financial plan. This is necessary for individual investors to make sure that all financial activities proceed smoothly during the year.
1. Cash Flow Managing:
Income and expenditure can be better coordinated through the Plan. It assists in identifying whether borrowings are within prudent limits.
2. Insurance Planning:
It usually takes care of fickle needs and as these needs can arise at anytime, insurance is extremely important.
3. Investment Planning:
Investment planning needs to be done at the beginning of the year. Increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.
4. Retirement Planning:
Due to increase in durability in life and growing operating expense due to inflation sustaining the living standard during post departure stage is a difficult task, so a wise outlay of a nest egg during working life helps in coating comfortably during retirement stage.
5. Tax Planning:
The monetary plan should help client in minimizing its tax legal responsibility and also maximizing its after-tax returns from your investments.
6. Estate Planning:
Estate planning is arranged for the transfer of property to officially permitted heirs and to other beneficiary, in a way that will, as much as possible, achieve its objectives.
Source: http://montezumaproperties.com
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