Why a Financial Plan?
We build relationships before we ever build portfolios.
A financial plan will act as a road map with strategies that define your financial goals. A clear financial plan road map helps you to comprehend the "why," the "how," and the "what" behind your actions.
What is Financial Planning?
At Finvision Capstock Pvt Ltd., we recognize the importance of both technical and personal aspects when crafting a comprehensive financial plan. We believe that effective financial planning requires managing not just the money (technical) but also the emotions, expectations, and aspirations (personal) that come with it. Personal challenges are often like an iceberg—hidden beneath the surface and requiring specialized attention.
Before delving into technical solutions, it’s crucial to reflect on your sense of self and sense of purpose. These core elements guide your decisions and help navigate inevitable changes in life. Whether it's a change in your financial situation or personal circumstances, both areas can cause turbulence—financial challenges related to money management and personal challenges involving emotions, relationships, self-confidence, self-esteem, and peace of mind.
A detailed financial plan not only provides strategies for your wealth but also ensures that your family can meet its commitments and expenses, even in your absence—whether due to illness or premature death. Managing your finances without a personalized plan is challenging. While it’s possible to create a plan on your own, seeking the expertise of a Certified Financial Planner is the best approach, especially if your needs are complex.
Our approach goes beyond just financial numbers—we focus on both your financial security and your emotional well-being to guide you toward a secure, peaceful future.
Who should consider undergoing the Financial Planning Process?
With over 20 years of experience in the financial planning process, I understand that a financial plan is essential for anyone with dreams. Whether you're a working student, newly married couple, retiree, widow, widower, or even a divorcee, financial planning is crucial at every stage of life.
For those seeking financial certainty amid life's uncertainties, a personalized financial plan is key. It is for anyone who wants to achieve their life goals through structured, well-thought-out financial strategies. There is no specific age or stage to begin this process. Financial planning works for everyone who is serious about organizing their finances and creating a roadmap to follow.
Just like we consult an architect before building our dream home, a financial plan should come first before making any investment decisions or purchasing insurance.
While dreams inspire us, it is goals that turn those dreams into reality. To make those goals attainable, it is important to define them with both quantitative and qualitative inputs. Without clear specifications—such as target dates and amounts—your goals remain vague and challenging to achieve. Your mind needs clear guidelines, and it’s never too late to start organizing your financial future.
A well-rounded financial plan covers risk analysis, insurance planning, investment planning, retirement planning, tax planning, estate planning, and cash flow management, among others. Each plan is customized to your unique needs. Just as Mr. X’s health plan will differ from Mr. Y’s, a financial plan must be tailored to your specific situation. What works for one person may not work for another. It is very much like a doctor’s prescription—one size does not fit all.
Financial planning enables you to make informed decisions based on your personal goals and aspirations. Without a proper plan, you are essentially navigating without a rudder, making it difficult to make sound financial decisions.
A financial plan should be your first step before you consider any investments, insurance, or loan options. With so many choices—credit cards, mortgages, mutual funds, pension products, and more—the complexity can lead to poor advice and hasty decisions. A financial plan ensures that the decisions you make are aligned with your unique needs.
Often, bank relationship managers try to sell financial products like ULIPs or mutual funds without understanding your requirements. This can lead to buying products that aren’t suitable for you.
As your income grows, it's easy to overlook the need for planning during times of irregular income, such as retirement. Your future income might not resemble your past earnings, so it’s important to plan for passive income streams as you transition away from active income. Many people today face financial uncertainty due to inflation, fluctuating interest rates, and taxes. While there are no simple solutions, a comprehensive financial plan can provide the clarity and structure needed to alleviate financial anxiety.
With demographic changes and shifts in the economy, many companies have moved away from defined benefit pension plans. This has led people to rely on debt funds, fixed deposits, and small savings schemes. While these are safer options, they may not provide the growth needed for long-term financial goals. The growing number of retirees and the increased demand for wealth will likely drive down returns on financial assets in the future.
There is no safety net for unforeseen events such as premature death, illness, disability, or old age. A solid contingency plan is essential for protecting yourself and your family.
With longer life expectancies, it is more important than ever to accumulate sufficient funds for retirement. Without proper planning, you risk becoming financially dependent on others, which is a scenario no one wants.
A robust financial plan takes into account both macroeconomic factors and personal circumstances, helping you create a strategy to secure your financial future.