Table of Contents
Financial Planning, Gift Powers-of-Attorney, Will & Intestate Succession
What is a Financial Plan
A financial plan is a comprehensive evaluation of an individual’s current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans
Coverage of Financial Planning
1. Manage Money
2. Regulate your expenses wisely
3. Maintain a personal balance sheet
4. Dealing with surplus cash judiciously
5. Create your personal investment Portfolio
6. Planning for Retirement
7. Manage Debt wisely
8. Get your risks covered
9. Planning Estate
10. Planning Taxes
What is Financial Planning?
• Financial Planning is the process of estimating the capital required and determining its competition.
• It is the process of framing financial policies in relation to procurement, investment, and administration of funds of an enterprise.
• Using the existing financial resource to satisfy your financial goals
• It is like a projected balance sheet that needs to be done every year.
The objective of Financial Planning
- Financial Security
- Multiple sources of income
- Earned
- Non earned
- Rental
- Interest
Importance of Financial Planning
- Helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.
- Ensures that the suppliers of funds are easily investing in companies that exercise financial planning.
- Helps in making growth and expansion programs that help in the long-run survival of the company
- Reduces uncertainties with regards to changing market trends
- Helps in reducing the uncertainties which can be a hindrance to the growth of the company. This helps in ensuring stability and profitability in concern.
Five Golden Rules of Financial Planning
- HAVE A PLAN, BE RICH
- SECURE YOUR FAMILY AND FINANCES
- NEVER IGNORE TAXES
- MONITOR YOUR INVESTMENTS
- BE AWARE, STARY ALERT
Steps In Financial Planning
- Knowing Your Financial Goals
- Knowing Your Financial Position
– Cash Flow Statement
-Statement of Net-worth
-Investment Calculations
- Knowing Your Risk
- Know your investments
Components of Financial Planning
1. Income Planning
2. Income tax Planning
3. Insurance Planning
4. Investment Planning
5. Retirement planning
6. Succession Planning
Income Planning
- How to procure money/Income
- Active Procurement
- Passive Procurement
- Understanding the nature of Income
- Regular Income and Seasonal Income
- Active and Passive Income Earning Capacity
- Levels of Income
- Impact of situations like Covid-19
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