Financial Services
Disciplined use of financial services helps you work towards your personal financial goals
Tax planning is the analysis of your financial position with respect to applicable tax laws. Tax planning is an important component of overall financial services and helps you manage tax liability in a lawful manner.
Desires to fulfill any of the goals or aspirations such as owning a home, starting a new business or arranging funds for retirement require a defined strategy for using appropriate financial services.
This is where we can help. Our range of financial services including tax planning, estate planning, mutual funds, life insurance, health insurance and general insurance can be selected as per your needs and risk profile. We do not offer portfolio management, investment advisory or guaranteed returns.
Using Financial Services Wisely
Periods of Fund Requirements
In our life, we have different goals to be worked towards. We may need funds for livelihood, marriage, housing, health, higher education of a child, marriage of a child, and later for our retired life. Funds are required for all these activities. Therefore, disciplined use of suitable financial services is helpful in planning for these requirements.
Short Term
Short term funds are required to meet current expenses up to one year. Usually, these are needed for necessities and unforeseen expenditures.
Medium Term
Medium-term fund requirements are to meet expenses between one and five years. They may include purchase of essential capital items, education or medical needs.
Long Term
Long term funds are required to meet expenses beyond five years. They may include funds for higher education of children, purchase of a house or retirement needs.
Key areas of Financial Services
Income & Cash Flow
Understanding income and cash flow helps decide how much can be allocated towards different services and products.
Tax Planning
Tax planning is done for effective, lawful management of tax liabilities as per prevailing rules.
Estate Planning
Estate-related arrangements may require long-term investments and appropriate documentation.
Social Security & Protection
This mainly includes life insurance and health insurance to protect your family and manage medical expenses.
Retirement Needs
Retirement-related needs are addressed by building a corpus over the long term to support your post-retirement lifestyle.
The understanding of income and cash flow is an important step in using financial services. How much income is being earned and how much is available for different products and services are points to be considered.
Saving is another crucial aspect and should be aligned with your future needs. A commonly used rule is 50:30:20 of income – where 50% goes to necessities, 30% to discretionary needs, and 20% towards savings. The allocation between needs and savings may vary depending on fund requirements.
Defining financial goals helps you decide how to use different services. Short-term, medium-term and long-term goals can be set as per your requirements such as education, housing, protection or retirement.
This mainly includes life insurance and health insurance. Life insurance may help the family manage financial difficulties in the unfortunate demise of the earning member. Health insurance helps manage the rising cost of medical treatments and unforeseen health expenses.
Retirement-related needs generally arise after completing a certain number of working years. Planning for retirement helps you maintain your lifestyle after you stop working. It usually requires long-term investing over 15–20 years to build an adequate corpus.
Benefits of Using Financial Services in a Disciplined Way
Disciplined use of suitable financial services helps you manage income and cash flow for present and future needs. It supports you in setting short-term, medium-term and long-term goals and choosing products accordingly.
It enables you to monitor and evaluate your holdings periodically. You can re-align or change your usage of products as per performance and suitability, keeping your goals in view.
You remain better informed about tax, protection and long-term corpus needs, which can help you make more confident decisions. All investments are subject to market risks and do not provide assured or guaranteed returns.
Limitations of Financial Services & Investments
Uncertain future: No one can assure future performance of any investment product or scheme. All investments are subject to market risks and other factors.
Past performance is not an indicator of future performance: Any assumptions are usually based on past data. It is not necessary that future performance will be similar to past performance.
Impact of external factors: External factors like government policies, regulatory changes or economic events may affect markets and products.
Long gestation period: Many financial services and investment products are used for long-term needs. Actual outcomes may differ from expectations and require periodic review.
Despite these limitations, the disciplined use of financial services remains important for managing tax, protection and long-term corpus requirements.
