Financial Planning

Planning plays an important role in our life, be it a Financial Planning, Career Planning, Business Planning, etc. Financial Planning forms an integral part of all types of planning. Efficient planning makes it easier to achieve our goals. The main objective of Financial Planning is to make available the funds when required.

Here we will discuss Financial Planning for an individual.


In our life, we have different goals to be achieved. We need funds for our livelihood, Marriage, Housing, Health, Higher education of a child, Marriage of Child, and finally, for our retired life. Funds are required for all these activities. Therefore, meticulous financial planning is needed to achieve the same.


Funds requirement can be divided into 3 categories i.e., Short Term, Medium Term, and Long-Term requirement – depending upon the period over which funds are required.

 Short Term

Short term funds are required to meet the current expenses up to one year. Usually, these are needed for necessities and unforeseen expenditures.

 Medium Term

Medium-term funds requirement is to meet the expenses required above one year to five years period. It mainly consists of the purchase of capital items of necessities, Education, Medical, etc.

 Long Term

Long term funds are required to meet the expenses to be incurred above Five years. It mainly includes funds needed for the higher education of children, purchase of a house, retirement planning, etc.



The following are the major types of Financial planning, depending on the requirement.

Investment Planning

It is an integral part of planning. Funds are to be invested as per the Short-term, Medium, or Long-term requirements.

Tax Planning

It is to be done for the effective management of Tax liability. The points taken into consideration are how funds are to be invested in meeting the tax liability and how tax liability could be minimized.

Estate Planning

It is everyone’s dream to own a house in his lifetime. It requires long-term planning. Here funds are deployed for a long period, say for 15 to 20 years in order to accumulate handsome funds to buy

Retirement Planning

It is also an essential aspect of planning. One has to retire after serving for specific numbers of years of service, mostly on completing 60 years of age. It lets you lead the same standard of life, which you were leaving during your working period. It requires long-term planning. Here funds are to be invested for a period of 15-20 years to generate a good amount of corpus.

Tax Planning

Tax Planning refers to the analysis of the financial position concerning the payable tax liability. Tax Planning enables the person to reduce tax liability legally. Tax Planning is an important component of Financial Planning. Financial Planning has got a larger perspective. Tax Planning is equally important for both individual and Businessmen. It helps them in rationalizing their tax liabilities.


The following are the steps in Tax Planning:

Forecasting of Total Income and Taxable Income

The total income for the year to be estimated in advance. Based on the total income and taxable income also to be estimated. This will help in proper tax planning for the ensuing financial year.

Assessing Tax Liability regularly

During the year tax liability is to be assessed regularly based on the income. This will help in keeping the tab on tax liability so that there will be no panic at the end of the year.

Filing of Income Tax Return(ITR)

We must file our Income Tax Return at the end of the year within time to avoid any penalty.

Paying Advance Tax

As per the forecast of the tax liability, if advance tax is to be paid we must pay the same within the stipulated time to avoid interest for the delayed period.

Investment and Expenses

Once expected total income for the year is known. The expenses and the amount available for investment can be estimated. Investment in tax savings schemes may be started at the beginning of the year. We may start investing in Equity Linked Savings Scheme of Mutual Funds through monthly SIP or start contributing to the PPF scheme. This will reduce the pressure at the fag end of the financial year.


The following are the most popular tax savings methods:

  • Equity Linked Tax Savings Schemes(ELSS) of Mutual Funds
  • Premium paid towards Life Insurance Policies
  • Premium paid towards Health insurance Policies
  • Donations to Prime Minister Relief Fund
  • Five-year Tax Savings Deposits of banks
  • Contribution to the National Pension Scheme(NPS)
  • Pension plans of life insurance companies
  • Investment in National Savings Scheme(NSC)
  • Contribution to Employees Provident Fund(EPF)
  • Contribution to Public Provident Fund (PPF)

Succession Planning

Succession Planning refers to preparation for handing over the mantle of an organization in the event of Retirement, Resignation, or any other unforeseen circumstance to a suitable person. Succession takes place in the family as well. Son takes place in the position of father after his demise. The Succession Planning is a need of all organizations irrespective of their size.

Succession Planning is necessarily a process of developing a leader who can take place in the position of existing leaders when they retire or leave. This helps the organization in continuing the business uninterrupted. Succession Planning is an important part of business strategies incorporate Sector. Therefore, it is also called Corporate Succession Planning.


Succession Planning is an important part of the Human Resources Planning. It is not certain as to how many employees will continue in the organization. Suddenly leaving the organization will create a vacuum and affect the functioning adversely. Hence, HR Dept. has to be in preparedness to meet such eventualities. They have to keep on identifying the key positions and employees to fill such positions on an ongoing basis.


  •  Identifying the key area and position

    This is the first step in succession planning. The key area and position should be chosen carefully, looking at the need of the organization.

  •  Identifying the traits for the key area and position

    The required capabilities are to be identified for the identified position to select a suitable candidate.

  •  Identifying a suitable candidate

    Based on the traits required for the identified position, the capabilities of the identified suitable candidate must be assessed.

  • Grooming and Developing

    Then identified candidate is educated and groomed by imparting knowledge through training, required for the identified position.

  •  Handing over the mantle

    The candidate groomed as per the requirement of the position is then placed in the position to take the mantle.

  •  Evaluation

    This is the last step in succession planning. The performance of the identified candidate is closely monitored and evaluated.

Succession planning aims to develop leadership substitutes for the unhindered functioning of the organization.

Matrix used in succession planning

The following matrix is used for successful planning

Employees Turnover

The overall turnover rate of the employees is to be assessed and a certain level of no. of employees are to be maintained. This is done to meet shortage due to suddenly leaving the organization by the employees.

Identification of open positions

Open positions are to be identified and filled up from the identified succession candidate within the organization.

Retention of Key employees

Efforts are to be made to retain talented employees, who could be future leaders by offering them Training, Monitory benefits, etc.


When an open position cannot be filled from within the organization, recruitment from outside has to be done. As it is a time-consuming process, it has to be started well in time so that there is no gap in between.


The following are popular models used in the Succession Planning:

  1. Mass Recruitment: In this model, adequate number of employees are recruited so that suitable candidates are always available within the organisation on the account of resignation, retirement, death, etc. All employees undergo training and professional development programs. It encourages all Junior, Middle, and Senior level employees to take part in a leadership development program. This a cost-intensive exercise as a large no. of employees are trained.
  2. Specialized Recruitment: In this model, a very few employees are trained for a leadership role in an organization. These selected employees are given specialized training to face a certain situation and business conditions. This is a cost-effective exercise as training is imparted to a few selected employees only.
  3. Outside Recruitment: In this type of model, employees are recruited from outside the organization. This is done in case specialized employees are not available within the organization for the leadership role. This is time-consuming and costly.

SIP Investments

SIP, also known as Regular Savings Plan (RSP) in some countries, allows you to invest a fixed amount at pre defined frequencies in mutual funds. A bank / post office recurring deposit is the only other investment option that is similar to SIP. There are basically two options that an investor could take when they are making investments, one would be to invest lump sum into mutual funds and the other would be to invest using an SIP


Systematic Investment Plan Benefits

  • Get financial discipline to life
  • Start Investing with a small amount
  • Stay invested irrespective of market conditions
  • Cost averaging brings down purchase cost
  • Enhance possibilities of better returns

Children Future Planning

Planning for your child’s future is a much common concern, which continues to exist in the hearts of every parent. Parents in no way want their children with the same pains, hardships, shortage of money and resources, which were once experienced by them. None of the other joys carry enough potential to please parents than seeing their own children growing not only physically but financially also. As a parent if you have started experiencing the hindrances in relation to the development, education and marriage of your children then you are surely in need of children’s future planning.

The primary purpose of children’s future planning is to develop accurate financial needs by drawing a guide map of all foreseeable expenditures including higher education and several others, which might arise in the coming years.

Furthermore, in today’s hectic world, where inflation is already hitting hard and saving as well as investing for your child’s future is getting difficult, none but alone children’s future planning serves as a perfect destination, if you are eagerly looking forward to making strong and feasible financial career. If the cost of your child’s college fees is raising your fears, then this planning is crucial for you.

Children’s future planning services offerings with us overcome almost all of your worries as we take whole responsibilities on our shoulders. We keep you enlightened with those investment techniques, which can cover your financial blanket at the deepest level.

Along with this, we teach your children the value of money. Being included under our children’s future planning services, you can receive excessive freedom towards the overall management of money as it is never too late to start planning for your children’s future. Under successful planning scheme, we work towards the betterment of feasible and stable financial career of your children.

Insurance Planning

Covering yourself under the umbrella of insurance is extremely important especially for breadwinners who are supporting their families alone. Insurance planning is primarily concerned with ensuring in covering against all the risks, which remain prevalent in our routine lives. The planning of insurance is an important attribute of life, which cannot be ignored at any cost.

Whether it is concerned with buying a dream house, accumulation of wealth, pay check or even covering basic human needs, the role of a successful insurance planning cannot be ignored. You must not believe that proper insurance planning can allow you to receive the same benefits by charging you lesser premium than before.

Bear in mind, insurance is an important risk management tool that can protect you and your family from financial hardship caused by unplanned events. In order to make this whole process more affluent, we work with our clients to identify your risks and implement cost-effective risk management program that has been developed with your specific circumstances and requirements in mind. Insurance recommendations provided by our Insurance Planning Services include:

Key Features

  • Life Insurance
  • Health Insurance
  • Personal Accident Insurance
  • Income Protection Insurance
  • Child Cover

Under the guidance of our sharp minded employees, you can get an opportunity to receive wider insurance coverage and interestingly at low premium rates. Consideration of your overall needs, deciding what type of life insurance can best meet with your needs and other service related queries are actively answered by our efficient financial advisory team.

A well planned insurance policy of ours can help you out in obtaining excellent financial security of both life and asset in mind. Along with this, if you are suffering by paying more than half of your profits on taxation then do not worry at all as some of our insurance planning services facilities allow you to eliminate tax related expenses greatly. Contact us immediately!

Are you looking for a Health Insurance Policy which

  • Gives you maximum I Tax benefit under sec 80D?
  • Health Insurance cover to you, your spouse and children?
  • The instalment premium remains constant?
  • The cover continues upto age 75?
  • No restrictions and sub limits?
  • Reimbursement of Health check ups?
  • Lowest morbidity charges?
  • Cover for the Day Care Treatment?

Goal Planning

All of us work very hard in our life to be successful. But very few of us taste the fruit of success. If we carefully analyze the working of the successful people, we will find that they work differently. They work systematically and with focused attention to achieve the life goal. To achieve this, they plan meticulously. It’s called Goal Planning. Proper Goal Planning helps us in working smarter; of course, we have to work hard also. Smart working helps in optimizing the desired results.


Sometimes people confuse vision with Goal Planning. They think that both are the same, but not so. Having the vision is the first step of Goal Planning. Vision gives you a destination, whereas goal Planning helps in reaching the Destination.


The first step of a Goal Planning is setting up of a Goal. The word SMART helps in setting up of any goal. It is an acronym of Specific, Measurable, Attainable, Relevant, and Time-bound.

  1. Specific- The Goal set must be specific as to what is that you want to achieve. It should be clearly defined.
  2. Measurable-Goal must be measurable, so that you can check periodically to ascertain the level of achievement.
  3. Attainable-Goal fixed must be attainable. We should not set the goal that is beyond our capacity, in terms of finance and physical capacities.
  4. Relevant- Goal fixed must be relevant to what we want to achieve.
  5. Time-Bound- It is the most vital part of the Goal Planning. There must be a fixed time limit for achieving the goal. You can not continue your efforts to achieve your goal for an indefinite period.


The success of the Goal Planning lies in the proper execution of Goal Plan. The following are the steps of the execution of Goal Plan:

  1. Focused Attention- You should have focused attention on your Goal. There should not be any distraction or deviation.
  2. Attitude- You should have the right kind of attitude towards the goal. If anything is holding you back, then you have to avoid it immediately. Have a positive attitude always.
  3. Stay on course- Once goal decided, stick to it. Continue your efforts to achieve the same.
  4. Monitoring- Periodical monitoring of progress helps in measuring the level of achievement of a goal. Approach to be changed if needed.
  5. Adjustment: Be open to adjust the Goal as the situation warrants.


The following are the key areas where proper goal planning can help in achieving the desired aim. We can classify goals into Long Term and short term goals.


Long Term goal requires punctilious planning and takes 10 to 15 years.

  • EDUCATION- What level of education you want to achieve, the field, level of skill, etc.
  • CAREER- What do you want to become in your life, a Bureaucrat, Engineer, doctor, or a successful businessman. It is to be clearly defined.
  • FINANCIAL- How much do you want to earn. It is an essential planning as it is interrelated with other goals of life.
  • FAMILY- As to when you want to start your family. What type of life you envisage for family members. What are your plans to help your parents, wife, and children?
  • RETIREMENT PLANNING- Goal must set for creating a corpus to have at the time of retirement. 

    1. To complete my Post graduation by the age of 21-23 years.
    2. To start my career by the age of 25 years.
    3. To get married by the age of 28-30 years.
    4. To built house by the age of 50 years.
    5. To do retirement planning after the age of 50 years.


    Short Term Goals are for a shorter period. It may range from six months to 3 years.

    1. Amenities- Like purchasing a car, other household gadgets, Home theater, etc.
    2. Pleasure- Planning vacation abroad along with family.
    3. Acquiring new skills- Acquiring new skills to achieve better career growth, better financial returns.
    4. Physical- To improve fitness, reducing weight, quitting smoking and chewing tobacco, etc.
    5. Social Service- Fulfilling the social responsibilities by contributing to philanthropic activities.


    1. Want to purchase a car in the next three years.
    2. Goal to take the family for a vacation abroad in the next five years.
    3. Ambition to acquire a new skill to improve for a better career in one year.
    4. Want to reduce 10 kg weight in the next six months.
    5. Want to take a family of outing at the weekend.


    Goal Planning is equally significant in Financial Planning. Finance plays a vital role in our life. We need money at every stage of our life, be it Education, Treatment, Marriage, Higher education, Purchasing house, Retirement, etc. Meticulous planning may ease our burden.


    The following are the significant areas of financial planning:

    1. Generation of Funds:- It is the first and foremost requirement of financial planning. Funds are the basic requirement for the Financial Planning. Most funds come from the savings. Areas, where you can save an amount, are to be identified.
    2. Investment Planning: It is the second important part of financial planning as the creation of wealth over a while depends upon prudent investment. You have to invest the amount according to the period that means Short, Medium and Long term.
    3. Tax Planning- By proper tax planning, You can legally save the amount that will add to investable funds in your hand.
    4. Insurance Planning-Life in uncertain. Family should not face any financial problem after your untimely demise. Hence it is essential to obtain an adequate amount of insurance. You should have sufficient funds in your hand to pay insurance installments.
    5. Retirement Planning- The working or earning life of a person is limited to certain years. Normally, a person retires after attaining the age of 60 years. To lead the same standard of living, one needs sufficient funds in his hand at the time of his retirement.

    Besides above we need funds for Marriage, Higher education of children, medical treatment, the Purchase of houses, etc. for all the above expenditures we must have funds in our hands. You can achieve this through proper financial planning only.


    • Income- First income is to be determined. What is the level of income? How much disposable income is available in hand.
    • Savings- Through savings, only the corpus gets created. As per conventional wisdom, you should save 20% of the total income.
    • Financial Goal- You have to set the Financial Goal as per the need. You may require Funds for various purposes like Marriage, Higher education, Retirement, etc. Accordingly, you can invest funds for Short, Medium and Long Term.
    • Investment Strategies- Proper investment strategies are to be adopted for profitable deployment of funds. Funds may be deployed in different investment schemes viz; Bank FDs, Mutual Funds, Bonds, etc.
    • Monitoring-Investment made in various schemes are to be monitored continuously as to whether the returns are in line with the expectations. If not, then the investment is to be re-jigged.
    • Risk Management-Every investment has inherent risk. Hence adequate steps to be taken for mitigating the risk and avoid any possible loss.


    The following are the key benefits of the proper financial planning:

    1. It helps in managing your funds in a better way and offers better returns.
    2. It helps in determining your need for funds for various purposes like Marriages, Higher education, Medical treatment, Retirement, etc. It helps in fixing the goal accordingly.
    3. It helps in preparing a suitable investment strategies for optimum return on your funds.
    4. It helps in the creation of wealth over some time due to the compounding effect on returns.
    5. It helps in monitoring of investment and change the same as per the requirement.
    6. It inculcate the habit of thrift and savings, which helps in providing funds for investment.
    7. Tax planning helps in savings on tax legally.


    Like another thing the financial planning has some disadvantages also. The following are the main disadvantages:

    1. In financial planning, investments get made for the long term. We have to keep patience. In case of emergency, if we withdraw prematurely, it may cause a significant loss. Even there may be a loss in Capital also.
    2. The return on investment is not assured. We invest based on the past performance of the scheme. It is not sure that past performance will continue in the future also.
    3. The return on investment depends upon various factors like Government policies, Economic conditions, International factors etc.

    It is clear from our discussion that Goal Planning plays a vital role in our lives and helps us in achieving various landmarks in our life.