estate planning letter
Financial Planning And Wealth Management A Comprehensive Guide
Ways by which Financial Planning can be undertaken?
1. Cash Flow Management
Incomes and expenditures can be better matched through the Plan. It assists in identifying whether borrowings are within prudent limits.
2. Insurance
It usually takes care of unpredictable needs and as these needs can arise at anytime, insurance is extremely important.
3. Investment Planning
With increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.
4. Retirement Planning
Due to increase in longevity in life and growing expenses due to inflation sustaining the living standard during post retirement stage is a difficult task, so a wise investment of a nest egg during working life helps in lining comfortably during retirement stage
5. Taxation
The financial plan should help client in minimizing its tax liability and also maximizing its after-tax returns from your investments.
6. Estate Planning
Estate planning is arranging for the transfer of property to legal heirs and to other beneficiaries, in a way that will, as much as possible, achieve its objectives.
Who requires Financial Planning?
It is useful to everyone. Since every one has dreams and goals to be fulfilled, so even people earning small amounts of income should get their financial planning done, so that their limited income can be used more efficiently.
How is it different from Wealth Management (WM)?
Wealth management sounds similar to Financial Planning (FP), it differs in the sense that Financial Planning is for one and all while WM is only for a select few. It relates more the management of plenty i.e. taking care of the needs of affluent clients as part of a long-term, consultative relationship, while FP aims at getting the most out of limited resources.
What is a financial Plan?
Financial plan provides direction and meaning to financial decisions. It helps to understand how each financial decision can affect other areas of finances. For example, buying a particular investment product might help client save adequately to finance for its child’s higher education or it may provide enough for a comfortable retirement.
It includes a review of net worth, goals and objectives, investment portfolio, retirement planning, tax planning and insurance needs, as well as a plan for implementing client’s goals.
After a plan is developed, what next?
The best plan is useless unless it is put into action. Hence the plan should be implemented in said manner, and review the plan when there is a lifestyle change such as marriage, death or divorce. The review also considers changing goals and circumstances.
The entire process for a financial planner can be summed up as follows:
- Initial meetings with client and answering its queries if any.
- Receiving the Letter of Engagement
- Handing over a detailed questionnaire.
- Getting answers to those questions
- Plan preparation
- Getting the “Authority to Proceed” Letter enabling you to carry out the recommendations contained therein
- Plan Implementation
- Periodic Plan Review
About the Author
BLB Finance Institute is working in the finance industry since long. He is veteran in the industry and his articles and reviews are trust able. Top get more information about top finance courses in India and PG in Finance visit http://www.bifm.edu.in
does the owner have a right to tell us?
i live on a property in the middle of a sugar cane farm.not only do we get every insect/bug u can imagine,we get alot of green frogs and dirty canetoads.the frogs and toads poo everywhere and no matter how much you clean it,its back there the next few days.anyways we got a letter of the owners intention to sell so we’v given our 2 weeks notice.i got a call from the real estate saying the owner wants me to gerny where the frog/toad poo has stained the concrete because he is bringing people through to look at the house.i wasnt planning on doing it until i move.does he have the right to tell me to do it???
He has no right to ask anything of you as long as your rent is paid. He also has to have your permission to show the place as long as you’re still living there and you have the right to say no, unless otherwise stated in your lease agreement. Even when you do move out, if the frog poo stains won’t come up, you are entitled to a certain amount of wear and tear from normal use he can not legally charge you for. Florida Laws protect the renters more than they do the owners.
Chapter 6 Cross Border Estate Planning.mov
Buffett Says Buying His Home for $31,500 Was Third-Best Investment He Made
Billionaire Warren Buffett said buying a home was the third-best investment he ever made, after the rings he bought for his first wife, Susan Thompson, and, after her death, his second wife, Astrid Menks.