Personal Financial Planning

Personal Financial Planning

Personal financial planning is defined as a process of determining an individual's financial goals, purposes in life and life's priorities, and after considering his resources, risk profile and current lifestyle, to detail a balanced and realistic plan to meet those goals. The individual's goals are used as guideposts to map a course of action on 'what needs to be done' to reach those goals.

Scope

1. Risk Management and Insurance Planning

• What is your risk profile?
• What type of risk you having in your current lifestyle?
• How to diversify your risk to protect you and your family?
• Do your insurance coverage matching with your lifestyle?
• Do your family's risk have been enough covered?

2. Cash Flow and Liability Management

• Inflow (Income) Vs Outflow (Expenses)
• What is your cashflow ratio?
• Asset Vs Liability
• What is your networth?

3. Investment Planning

• What is your risk profile?
• What type of investment you plan to involve?
• How to set your investment portfolio?
• How to diversified your investment according to your portfolio?
• Do you understand concept of dollar averaging cost?

4. Retirement Planning

• Your current age Vs retirement age
• What types of lifestyle or goal want to achieve during retire?
  What is your estimated fund needed for retirement?
• What types of tools use to accumulate the fund?
• Any planning or incomes during retire period?
  

5. Child Education Planning

• Your child age Vs Uni entry age
• Where you intend to send your child for study?
• Duration of the course?
• How much for the course?
• How much the current fund available to save?

6. Asset Management and Re-financing

• Current asset in hand Vs the market value
• What is the current interest rate package for your property?
• How much interest can be saving with re-finance facilities?

7. Taxation Planning

• Planning for reduction of tax liability and freeing up of cash flow

8. Estate Planning

• What is will writing?
• How important will writing in your estate planning?
• What is a trust service?
• How does the trust account functioning and help you in your distribution process?
• How to create and accumulate our wealth for our next generation?
• How to form a guardian fund for our young children?

The 6 Steps Process:

1. Goal Setting
2. Information Gathering
3. Information Analyzing
4. Financial Plan Designing
5. Strategies Implementing
6. Plan Monitoring and Reviewing