There is a method to this madness of Personal Finance that can help streamline things. Below is the process we will follow:
Any journey starts with understanding where we stand currently. This is no different. In this step, we dig deep starting with a simple cash flow analysis – an idea of income, saving and spending. We explore and narrow down on your financial goals as well as how do you get to retirement. We take an overview of your current debts, existing investments so that you too see it at one place and how it contributes to your goals. Most importantly, we also check for your moat – your protection plans, be it life or health and their adequacy levels.
In my experience, clients are often in for a surprise when they start accumulating the scattered pieces of their financial lives into one consolidated jigsaw puzzle.
With information about the current position in place, we get to planning how to reach our destinations – be it financial goals (including retirement) or tax planning or reducing debt or building an emergency fund or strengthening your insurance.
A good plan would work on all these simultaneously, to inch up on these tracks bit-by-bit. It will also include any situation specific to you, for instance, stock options. With the plan, we can go back and forth till the time we arrive at an acceptable route.
Do note, after the basic information the planning stage is completed only after an agreement is signed (as mandated by SEBI).
Having gotten to know you so well and with data points through an in-depth risk profiler, we will design an asset allocation that matches your risk appetite. We will take into account your existing portfolio and see how that needs to be transitioned, too. This can be done one time as part of the financial plan or it can be done on an ongoing basis with an annual advisory retainer.
Alas, there is many a slip between the plan and the execution. That is why we also offer help on the execution of your investment plan as part of the annual advisory retainer. With that, any inertia that you might be facing on getting started is no longer a bottleneck.
We discuss the investment plan and if desirable, execute the same in Direct mutual fund plans only.
Personal finance is as dynamic as our lives. Hence, the annual advisory retainer comes with in-built quarterly portfolio reviews as well as half yearly check-ins on a holistic finance planning overview. This takes into account salary increases or bonuses and how best to deploy them. If there have been any money questions or concerns, we work on those as well on an ongoing basis, for instance estate planning.
While we all make our plans, sometimes life throws us curve balls. This could be a job loss or even the loss of a loved one. You could suddenly decide to move cities or even countries. In all such changes, we help pivot the plan as necessary.