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Holistic Investment - Financial Planning

How to construct a financial plan with a strong foundation?

by Holistic Leave a Comment | Filed Under: Financial Plan

The motive behind creating a financial plan is to have a route map to achieve your financial goals . A plan that tells you what are all your realistic goals and what are all your unrealistic dreams. A plan that tells where you will be financially 5 years from now, 10 years from now and 20 years from now.

A strong foundation is important for a long lasting construction. Similarly when we are constructing a financial planning there are some basic things to be given more attention.

Current Savings and Investments:

We need to take into account what are all the current savings and investments you have. It could be cash in hand, cash at bank, investments in financial assets, real estate investments and other investments. However, this will not include assets which we are keeping it or maintaining for our personal use like personal jewels, self occupied house, car etc. This exercise of assessing our current savings and investments is done in order to understand and realize “where do we now stand financially?”

Future Savings Potential:

We need to take into account what is your family’s current income and at what rate this income is expected to go up till your assumed age of retirement . This growth rate of your income can be guessed to certain extend by considering your past increment experience and your industry standards. Based on this predicted growth rate of income, we need to project your income till your assumed age of retirement.

Also we need to project your expenses. Take what are all your expenses and project these expenses till your assumed age of retirement . Expenses can go up because of 2 reasons. One is inflation and the other is change in lifestyle and life stage.

Once you project your income and expenses till your assumed age of retirement, then you will be able to assess how much you will be able to save year after year till retirement. Identifying your saving potential helps us determine where we can reach financially and how fast we can reach there.

Future Financial commitments:

Other important foundation work is to list down the future financial commitments for goals. First you need to list down the financial goals to be achieved on a timeline. That is you may want to buy a car 3 years from now, you may want to buy a property 5 years from now, you may need to meet your first kid’s higher education 10 years from now, second kid’s education 13 years from now, you want to retire 20 years from now and in between you would like to go for a few international vacations…

Once you list down the goals on the timeline, we need to find out the approximate future value of these goals. Finding out the future value of the goals is little difficult but possible if we follow a few simple steps. Try to figure out what would be the present value of these goals if you were to meet these goals today. That is, what would be the value of the goals in today’s cost of living? Then project this present value with inflation to find out the approximate future value of these goals.

Say one of your goals is to buy a property at the end of 5 years from now. Visualise and get more details about this goal. In which location you will be likely to buy the property? What would be the size and other specifications of the property? Once you have found out answers for these kinds of questions then you need to find out what would be the cost of such property now. As you have arrived at the present value of your goal, you need to project this present value of the property with assumed inflation rate for 5 years and you will be getting the approximate future value. Say the present value of the property is 70 lakhs, then the inflated value end of 5 years may be 1 crore.

We need to do this exercise for each and every goal. End of this exercise, you will have what are all the goals you are planning to achieve, when you are achieving each one of them and what would be the approximate future value of these goals.

Viability Check:

Now we need to check, with the current savings and future saving potential, is it possible for you to achieve all the goals. If it is possible, we can go ahead and create a financial plan. If it is not possible, then what is the alternative? The alternative may be to retire at 58 instead of 55, to buy the car after 5 years instead of 3 years or to buy the property worth 50 lakhs instead of 70 lakhs.

We need to create a few alternative scenarios which are achievable. After going through these alternative scenarios, depending on your priority you need to choose a scenario which suits best for you. You may like to choose a particular scenario and fine tune it. Like this we need to finalise a scenario which is achievable by a financial plan as well as acceptable to you.

Once you finalise this scenario, based on that a sound financial plan will be created. This viability check makes you understand the shortfall or gap between your realities and dreams. This makes you keep realistic expectations in your financial goals.

You can’t ignore these basic things in creating a financial plan. If these basics are ignored then your financial plan will become weak. You need to pay enough attention to these basic things which makes the foundation very strong and the financial plan very sound.

To create a sound financial plan with a strong foundation, we are offering a

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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