Now, more than ever, planning is the essential first step towards financial well-being. A good financial plan along with sound financial advice can help to make your financial future more manageable. When left to chance, your financial situation can drift from your goals. We, at Moneywizard Financial Services. can help you define your goals and stay on track.
Moneywizard Financial Services focuses on providing sound financial advice for individuals like you. We have a comprehensive approach that is focused on determining what is most prudent and beneficial for you.
Financial Planning is a comprehensive planning which includes Child Education & Marriage, Retirement Planning, Insurance Planning, Tax Planning, Planning for Short-term goals like a Car, Home, Vacation and the last but not the least-keeping for the emergencies and the unexpected.
One of the first most important steps in financial planning is to set financial goals for your future using goal based investing concepts. Financial goals are targets which you would like to achieve in the years ahead
How to go about goal based financial planning ?
The first step in setting up your financial goals is to chalk out those occasions in life when you will have to shelve out a large amount of money which your regular income cannot meet. It’s a no brainer that on occasions like marriages, education, international trips and retirement, you will need a lump sum amount of money to spend which your monthly salary will not be able to cater for.
Steps in setting financial planning goals or goal based investing :
Step 1 – List down all your future financial goals – these are occasions when you need a large sum of money. Step 2 – List down the time frame as to when these will occur. Step 3 – Document the current expense for these – how much you need to spend if this goal were to happen today. Step 4 – Calculate the future value of this goal with an inflation figure. Step 5 – Calculate how much you need to save each year/month for this goal.
For this you will assume a rate of return which will depend on how far your goal is and which investment method you chose. Invest for your goal in a suitable investment class It must be noted that goals can be short, medium or long term in nature.
Examples of short-term goals could be :
1. Pay off a home loan in another 1 year
2. Plan a major birthday bash for your child next year
Examples of medium-term goals could be :
1. Buy a car in another 3 years
2. Revamp the interiors of your house in 4 years
Examples of long-term goals could be :
1. Save for retirement
2. Save for child’s education
3. Save for child’s marriage
4. Plan for an international trip
It is very important to note that the rate of return and where you invest will largely depend on whether your financial goal is short-term, medium-term or long-term in nature. While equity is considered the best way to invest for long term goals, for short-term goals, debt is more desirable while medium-term goals can have a mix of both
Retirement security is one of the most critical issues Indians face today with more and more youngsters doing jobs in private organizations which are having less job security and more or less no pension. But no need to worry, we are there to help you.
We, at Moneywizard Financial Services, have several tools to help as well as guide you through your retirement planning. And, to help plan for your retirement, we offer a variety of Retirement Products & Services.
Retirement is one of the most important life events many of us will ever experience. From both a personal and financial perspective, realizing a financially sound retirement with adequate income takes sensible planning and persistence. And when you do retire, managing your retirement is an ongoing responsibility that carries well into one's golden years.
We believe that solid preparation along with sticking to your plan can help meet your long-term financial goals.
Tax planning is an essential part of your financial planning. Efficient tax planning enables you to reduce your tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions, deductions rebates and allowances while ensuring that your investments are in line with your long term goals.
Selecting tax saving investments You should think about the following criteria, before selecting your tax saving investments for the year:
Liquidity: How quickly will you need the money? Will you need to access the money within the next year or two years or over what duration ? None of the above instruments let you withdraw your money quickly, in fact there is a minimum three year lock in for all tax saving investments.
Risk and Return: How much risk do you want to take. There is a trade off between the two, some instruments are very low risk, but as a result they give low returns which are capped.
Inflation protection: The instruments that give you a low return typically are the worst type of investments regarding inflation. This is important because many of the instruments give you a fixed rate of interest, and lock in your money for a long period. This is not a good protection against inflation.
Tax Exemption: All tax saving investments under Section 80C are alike in one respect that they are tax exempt when they are invested. But they differ with respect to the tax on the income you earn from such an investment as well as the tax on the maturity of the investment
List of qualifying instruments under S. 80C ( limit Rs. 1,50,000) :
Have You Ever Thought About The Amount Needed For Child’s Education?
Financial planning for child’s education is a concern that continues to exist within the hearts of every parent. Parents don’t want their kids to go through the pain, hardship, shortage of money & resources, which were once acknowledged by them. Let iplan take the responsibility to guide and enlighten your investments, to cover your financial needs for this goal at the deepest level. Try our easy to use education planning calculator.
The cost of higher education is already high and rising at 10-12 per cent a year. child's education is one of the biggest cash outflows that families must plan for. A four-year engineering course costs roughly Rs 6 lakh right now. In six years, the cost is likely to touch Rs 12 lakh. By 2027, it would cost Rs 24 lakh to get an engineering degree.
The earlier generations had it easy. Competition was low and the fee in government institutions was modest. Now, the heightened competition for admission to quality government-run institutions is forcing students to turn to more costly private institutions. "In the future, global education brands may come to India and their fees will be very high.
Equity Linked Savings Schemes
The beginning of the financial year is always the best time to start your tax planning exercise. The benefits are obvious. One, you don't have to run around in the last minute to finalise your tax-saving investments and make the investments in a hurry. Two, it will also impart discipline to your financial life. Three, it is a great strategy to maximise wealth if you are investing in Equity Linked Saving Schemes or ELSSs to save taxes under Section 80C.
Investments in ELSS (or tax planning/saving mutual fund schemes) qualify for tax deduction of up to Rs 1.5 lakh under Section 80C. However, the trouble is that unlike the other traditional favourites like Public Provident Fund (PPF), National Saving Certificate (NSC), etc. it is a not a great idea to invest the entire money at one-go in March, just before the end of the financial year.
This is very important because investing a lumpsum in the stock market can be problematic. When you are committing the entire money in the market, you are essentially buying at a certain level. This could have a big impact on your return prospects, especially if you are entering the market at a higher level. Sure, if you are lucky, you may also enter when the market is at a lower level and make tonnes of money. But we won’t complain about that, right?
To cut the story short, this is the reason why many mutual fund advisors advocate staggering the investments while investing in equity mutual funds. When you are investing regularly at a fixed interval, you can avoid the trap of entering the market at certain level. You can also average your purchase cost if there is volatility in the market. Rupee cost averaging is a great strategy to maximise your wealth from equity mutual fund investments.
You can invest either through a Systematic Investment Plan or Systematic Transfer Plan in an equity mutual fund. If you want to keep the money in the bank, you can start a SIP to invest regularly in an equity mutual fund scheme. Or you can park the money in a liquid scheme and transfer a fixed amount regularly in an equity scheme via an STP.
Wealth management is an investment advisory service for high net worth individuals.
Wealth management combines both financial planning and specialized financial services, including real estate planning, legal and tax advice, and investment management services. The goal of wealth management is to sustain and grow long-term wealth. The range of services available is highly customizable in order to meet the specific needs of the client. We, at Moneywizard Financial Services, determine their monetary goals and develop actionable strategies that could help them realize their goals. We also protect their finances against risks.
Wealth management is a service designed specifically for high net worth individuals.
Protect and grow your wealth with our Wealth management services ::
Wealth Management offers the following services:
• Investment planning
• Insurance planning
• Retirement planning
• Risk Management
• Asset Allocation
• Tax Planning
• Alternative investments
• PMS – Equity and Mutual funds
Financial planning is the long-term process of wisely managing your finances to help achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life. Remember, financial planning is a process, not a product.
Would you benefit by adding a Financial Planner to your team - a Planner who will focus on your unique picture, and work together with you. Our sole objective is your success in achieving your financial goals and having a secure future. In these complicated times, the need is greater than ever to have confidence that you are focused and pointed in the right direction.
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