Archive for the ‘Personal Finance’ Category
Do I need a financial plan?
I can plan in the times to come rather than now? My future is a long way away, why bother today?
The best time to review your financial situation is today! And you must
do this as regularly as you can because your life is never static.
Unless you start early, you might find that time has passed you by. You
will get older, your children will have growing needs, your expenses
will rise…..and, before you know it, you may be regretting not planning
for the future. Don’t be satisfied that you will be okay whatever
happens.
Financial plans must be dynamic to reflect the changing socio-economic
environment, as well as the stage of life that you are in. Yet, very few
of us bother to review our financial situation as we move from one
stage of life to another. We recommend that you review your financial
plan at least once a year to take advantage of changing investment
opportunities and risk.
Why should you do Financial Services regularly?
Simply put, time never stands still. You grow old, your needs change,
your family’s needs will also change. Additionally, the context around
you will also change. There will be new investment opportunities. Some
old investments that you would have made might no longer make sense with
the passage of time or will need to get updated.
>> With the passage of time and your increasing age, your needs change.
>> Similarly, due to economic, political and family reasons, the
context can also change. Accordingly, you need to adjust and update your
financial plan to take advantage of the new conditions as well as to
react to changes.
>> Someone in their 20s will have different needs as they enter
their 30s. Also, over this time period your risk profile might have also
changed (age-based Financial Services).
>> Someone who is married with no children will have to update
their plan when their child is born. As a start, if the person did not
have any insurance, he or she must buy protection because the family
size has increased. Also, this would be a good time to start thinking
about writing a will to identify who your beneficiaries will be
(life-stage based Financial Services).
Go through stages of life: First job, marriage, buying a house,
children, promotion, education/marriage, grandchildren/retirement