A financial plan is sometimes referred to as an investment plan, but in personal finance, a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.
Financial planning is the process of defining different financial goals, quantifying these goals factoring in inflation and having an investment plan to meet these goals. Financial planning also prepares you for unexpected risks e.g. untimely death, serious illnesses, sudden loss of employment etc.
Financial planning involves looking at a client's entire financial picture and advising them on how to achieve their short- and long-term financial goals.
Financial planning is a step-by-step approach to meet one's life goals. A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.
A financial goal is a target to aim for when managing your money. It can involve saving, spending, earning, or even investing. Creating a list of financial goals is vital to creating a budget.
Examples may include taking a vacation, buying a new refrigerator or paying off a specific debt. Mid-term financial goals can't be achieved right away but shouldn't take too many years to accomplish.
The “Dream House” was designed with primary aim to materialize its owner's dream. A dream of a home that will not only fulfill his functional needs and accommodate his family, but also will satisfy his deepest desires, even those rising from his subconscious.
This is a worksheet where students will research a home that they have found. They will need to answer different questions on their chosen home. This project can be done once or done multiple times and with different searches.
Experts believe that even if you have the sums to purchase the property in one go, it is better to take a home loan. Instead of spending a lump sum amount on the property.
A Child Education Plan is an insurance policy that offers protection as well as an opportunity for saving money to ensure a secure future for your child. It makes sure that your child receives the education he/she desires with a lump-sum payout at maturity or when any unfortunate event occurs to you.
A child education plan allows for systematic savings by a parent to ensure their child's future plans are fulfilled. It helps guarantee a safe path for the child to achieve their dreams, even if the parents aren't around, due to unforeseen reasons.
Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently. This includes setting your retirement goals, estimating the amount of money you will need, and investing to grow your retirement savings.
Retirement plans allow you to invest now for financial security when you and your employees retire. As a bonus, you and your employees get significant tax advantages and other incentives.
An effective retirement plan allows individuals to retain their financial stability and independence after they have completed their professional career, by saving a percentage of their income while working to have some financial stabilities.
Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death.
Estate planning in simple terms refers to the passing assets / investments down from one generation to another. You decide how much of your estate – be it property(s), car(s), personal accolades, financial investments, etc. – you want to pass on to whom and how, after your demise.
To complicate matters, this is the American definition of a debenture. In British usage, a debenture is a bond that is secured by company assets.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax planning examples include tax diversification, investing in schemes such as PPF, National Pension System, Sukanya Samriddhi Yojna and more. Additionally, claiming deduction for payments like home loan premiums, mediclaim premium tax deductions, etc. also help in tax planning by reducing overall tax outgo.