Financial Planning


Investment Planning / Wealth Creation

Life is like a Football match. Imagine, if players do not know where is the goal post, they will just keep running here and there with ball in entire ground and game time will over. everybody on the earth got limited time but unlimited dreams and goals. A financial plan creates a road map for your financial goals. It covers major financial aspects such as cash flow, savings, debt management, risk management, child education planning , childrens marriage planning, retirement Planning, estate planning, tax Planning. A defined investment strategy gives you a clear, pragmatic path to follow towards the accomplishment of your most important financial goals.

Having a financial plan is like having a travel plan - it identifies where you are going, how and when you will get there, how much will it cost, and things to do along the way. A personal financial plan looks at where you are today and where you want to go. Then it sets out all the steps you need to take to get there. Everyone who is earning should draw up a financial plan. The plan will help you get the most from your money and help you in achieving your financial goals in life.

Some people naturally resist the process of creating a Financial Plan. Initially, it seems overwhelming and/or just too much of trouble. However, the potentially devastating consequences of not having it are far greater than the initial discomfort that you experience of the process. For most people we have worked with, the hardest part is just making the decision to get started. Once the process has begun, most clients find it engaging and interesting. 

Do you need financial plan?

Yes - if you have an income, a family or planning to have one in the future, retirement dreams, and for many other financial reasons / goals that are unique to you. No one can predict the future but one can certainly be better prepared for it. An effective financial plan will make sure that you are financially prepared to deal with the unexpected events and stormy times. If you dont have one, youre more likely to end up in a financial mess. On the contrary, if you have one and the recommendations thereon have been executed, most of your financial goals will be satisfactorily met. A good financial plan can alert you to changes that must be made to make sure a smooth transition through financial phases, such as decreasing spending or changing asset allocation.

By developing a financial plan you and your family:

  • It will give you a better understanding of your current financial position.
  • Determine attainable retirement, education, insurance, and other financial goals.
  • Review goals, funding strategies, and alternatives to balance all goals.
  • Have the necessary financial resources set aside to fund your goals as they occur.
  • Reduce the effects of unexpected events such as disability, premature death etc.

You need not be very rich to have a financial plan. No matter how much you earn and at what age, a plan is important to make your life easier. As your financial situation influences almost every aspect of your life, a regular financial plan can help give you peace of mind and protect you from unforeseen, unfavorable situations. Once you have a working personal financial plan, you can use it to make informed financial choices. Having a good financial plan will allow you an over view of what you can afford. It will allow you to analyze your wants versus your needs. It also provides you a way to see how to avoid major financial mistakes in the future.

Risks of not having a financial plan:

  • You may be able to achieve what you want today but might not be able to achieve what you need few years down the line. Say, if you buy a new car now, you might not have enough funds later to buy your dream home.
  • You may not see the big picture. Say, you may grow your wealth by making good investment choices but end up being tax inefficient and pay more taxes than you need to.
  • You may take a short-term view of an opportunity and make rushed financial decisions, or fall into some scam trap. Worst of all, you may end up doing nothing (and just thinking of doing something) and never achieve your financial goals.
  • You might become a victim of mis-selling and build a corpus of investment products that neither suits your financial needs nor your risk profile.
  • You are very much likely to worry more about money and financial security. You may not know where you are today and where are you heading for.

Tips for Effective Financial Plan 

  • Be realistic with your investment returns; do not plan to outperform the markets.
  • Account for market risk and do not assume the same return to repeat every year.
  • Do not forget to plan for inflation and taxes.
  • Review your financial plan regularly to see if you are on track or need any changes in the plan.

Childs Education

The education Expenses in India is inflating at a higher than average rate. The average annualized inflation rate for an MBA course at 11%, for Medical courses at 13% and for Engineering Courses at 8%. And further more expenses like Hostel Fee, Food Bill, Books and Study material will be adding to this.

Recent trend shows that most of the Parents takes Education Loan to pay the tuition fee and eventually ensure that post completion of education when child start his journey of financial life, he starts with Debt.

Most of us do not understand the compounding impact on Return, when we do regular investment in Equity over a long period of time. We continue to blindly put surplus money into “Child Plans” which are Life Insurance Policies and net yields are very less and not able to outpace the inflation.

Child's Marriage Planning

For a parent, seeing their child happily married is an unparalleled joy. Whether it is the pride of seeing your son to welcome at home a bride, or the bittersweet joy of seeing your daughter start a new life with her husband. But giving your children the wedding of their dreams requires a lot of careful financial planning. NAVonclick is here to help you in planning and making it a event which you will remember forever as the fulfillment of a lifelong dream.

Retirement Planning

The life expectancy in India has gone up with the advancement of the medical sciences, but are you saving enough for retirement? Are you living under a fear to compromise your standard of living after retirement? In absence of proper financial planning for retirement, it will either wipe out our savings or inflation will erode away our retirement corpus. There are many, facing severe problems in the post-retirement age with the surging monthly expenditure due to the inflation and along with that the medical expenses also go up hugely. Most retired people have limited income and therefore investments should be planned in such a way that those yield a regular income post retirement. Further, as one approaches retirement, it is important to gradually de-risk the portfolio to safeguard the corpus. Of course, this needs to be done considering the risk tolerance and risk profile of the individual and varies from person to person.

Vacation Planning

Managing the work life balance in todays corporate culture is one of the important aspect of everyones life. To rejuvenate yourself,  vacation has become a requirement rather than luxury . It must be planned to make sure that , you  accumulate sufficient fund to make it more memorable and enjoy your time with full relaxation . A vacation is supposed to be a fun and relaxing break from your everyday life. However, a poorly planned vacation can end up being a major headache. Be ready to enjoy your time off by planning your travel, accommodations, and activities ahead of time. Giving yourself plenty of time to plan can be a fun way to build up excitement for your vacation.