At different life stages, our financial responsibilities tend to increase. Achieving long and short term needs & goals (marriage, increasing costs due to inflation, higher education, accommodation, starting a family, lifestyle upgrade) requires financial aid for accomplishment. With time, life also experiences twists and turns, making you face difficult situations that may force you to spend extra.
To manage responsibilities and handle financial difficulties in an effective manner, financial planning is crucial. Financial planning is a comprehensive process encompassing investment decisions required to gather sufficient amount of corpus for handling future needs and emergencies.
Financial Planning primarily deals with effective money management by way of savings and investments in appropriate financial assets to earn easy monetary returns. These financial returns help to strike a balance between sustaining the current lifestyle needs as well as fulfilment of growing responsibilities in life or management of unexpected situations.
For effective financial planning, companies such as MaxLife offer a gamut of Life insurance products such as term plans, income protection plans, endowment plans, whole-life plans, retirement plans, child plans, growth plans, and savings plans. To achieve long-term and short-term goals in a convenient, hassle-free manner, you require expert advice on timely selection of different products along with the amount and duration to save. Here are a few expert financial planning tips that you can follow:
- Secure your family’s financial future
Any unfortunate event in life may separate you from your loved ones, leaving them without financial support. To take care of their basic expenses and life requirements in your absence, buying a life insurance plan is recommended. A basic life insurance term plan will offer a substantial amount of monetary compensation to the nominees of the policyholder in case of his death.
- Invest for Short Term Goals
Short-term goals, such as, home planning, , or higher education, require capital. The required capital can be achieved by timely investment in short-term, high-yielding life insurance savings plans. Invest in these plans at regular basis and avail substantial amount of returns to fulfil your goals.
- Plan your Child’s Future in Advance
As a parent, you will always want your child to avail the best kind of food, education, clothing, and other essential things. However, the costs of education and essential items inflate each year. To harness this rising cost, timely investment is child plans is recommended. These plans provide a substantial amount of returns at maturity. Moreover, few products options and add ons when chosen, will fund the child’s education in case the policy holder passes away during the plan tenure.
- Start Planning for Retirement Early
Post-retirement, you are supposed to be relieved of all duties, responsibilities, and obligations. However, to keep a steady stream of income to meet post-retirement expenses and lifestyle needs, investment planning in the early years is imperative. Start investing in retirement plans at an early age to earn the benefit of augmented capital growth.
- Sort out Your Debts
The EMI payments of short-term and long-term loans may constitute a major chunk of your monthly expenses. Similarly, Income Tax is a major deduction parameter that reduces the in-hand income. Invest in Income Protection plans to take care of loan repayments in your absence. They will provide a steady source of income to your family in your absence. Moreover, such plans also offer tax benefits under Section 80C, 80D, and 10(10D) of the Income Tax Act.
Follow the above tips to build a comprehensive, effective, and well-planned financial plan that will take care of your investments, keeping in mind your requirements and limitations. So what are you waiting for? Start with your financial planning today and secure your future.
Disclaimer: The above are only suggested views of the Company. Please seek an independent advice from a certified financial consultant or a Chartered accountant for your financial planning.