Achieve financial freedom in a week......

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail him at:  finplancoach@gmail.com)

Achieve financial freedom in a week...... YES.... In a Week...

Day 1: Review your life insurance cover

 

Review your insurance cover comprehensively.... Human life is invaluable. But, life insurance is the legacy one leaves to his family in his absence. Therefore, @ any point of time a person should be covered atleast 10 times of his annual income to ensure his family is fully secured always. Let's assume, If the annual income is Rs 10 lacs, the person should have Rs 1 Crore cover.

Day 2: Review your Health insurance cover

Review your health insurance cover for your family. Health costs are rising up and If the cover is provided by your organization, review the adequacy of the cover. Nevertheless, It's always better to have an additional cover which will be handy during the times of crisis.




Day 3: Review your saving habits:

• Am I saving the right way? 
• Is my saving = my EMI ?
• Is my saving getting invested the right way?

Some thoughts on the savings....




Day 4: Review your investments:

• What am I doing with my savings?
• Is my money lying idle in the bank earning dismal returns?
• Am I investing a regular sum every month?
• Can my money work harder to earn better returns?
• Am I investing my money rightly?   

Remember, saving your money is just one part.... But the most important aspect is investing your money rightly.....




Day 5: Review your financial goals: 

• Have I identified financial goals to achieve?
• Are the goals on track and in order?
• Do I have a goal for my child's future?
• Do I have a goal for my retirement?
• Have revisited them recently?
• Do I need to make changes?

Day 6: View or review your financial plan: 

• Do I have a financial plan for my financial freedom?
• Do I have a plan for my child's future?
• Do I have a plan for my retirement?
• Do I have a comprehensive plan to support my financial goals?

Day 7: Else, Call a financial planner NOW: 

When time is the constraint, work is hectic and financial planning is such a maze, it is tough to really focus and do such a comprehensive review... Leave this to a financial planning professional who would this job of assisting you in making a financial plan and make your money work as hard as you.......

 

You do your work, let the financial planner do his work on your quest to financial freedom.......

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail him at:  finplancoach@gmail.com)

Financial planning for 55/45 life situations...

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail him at:  finplancoach@gmail.com)

"At the end of the day, this was still a 55/45 situation" 

"And so if it turns out that it's a wealthy, you know, prince from Dubai who's in this compound, and, you know, we've spent Special Forces in -- we've got problems" -- US President Barack Obama's comments post Osama's hunt....

President Obama's comment sums up the life message. Life will offer 55/45 situations and we can still be successful if they are handled the right way; that the life never gives us opportunities which can be 100% sure; they always come with an element of uncertainty. But the key message is the conviction; though he gave a 55/45 chance even when it was decided to go for the mission. Of course the mission had a precise GOAL & TARGET and a  METICULOUS PLAN and RELIABLE RESOURCES to back it up. The result is there for all of us to see........ 

The key takeaways from this are a) setting precise goals b) setting precise targets c) reasonable forecasts d) constant tracking e) employing the best resources for the task.

Same principles apply in our lives too.. None of the situations offer 100% chance. It can be 55/45 situations many a time in our lives. But one should never fail to plan for situations which occur in our lives... Without planning  is like saying we'll land there and plan for the operation....

Financial planning is a tool which is a must for any life situations; be it 100% or 55/45....

1. Setting precise financial goals:

First basic ingredient in making a good plan is to clearly set the goals.. It can be your retirement, or your child's future planning or owning a home or any other goals.. And they must be very specific and measurable goals in order to achieve them financially.

2. Work on precise targets:

 

Goals should have measurable and time bound targets to make them meaningful and worthwhile. The entire financial planning concept works around the goals and targets. Some of them could be: buy a house in next 3 years; plan for child's education - 10 years; retire in 15 years... So on

3. Reasonable forecasting, a must: 

However uncertain life may be, we still can reasonably forecast our needs and wants, if not accurately. It's important that we spend some time and do home work  to understand our needs and wants, which will form the basis of our goals and targets for the future.

4. Keeping an eye, always:

It's highly important that you keep an eye always on the goals and targets after identification; because they keep changing over the time as the life in general has become very dynamic. What you planned 5 years ago may not be relevant today. It's better one keeps reviewing the goals and targets just to check if the plans are on sync with them.


5.Engage a professional financial planner: 

Financial planning is best left to an expert, whose job is to assist the clients on their future planning. It's true that you are very very busy in your work and profession, which leaves little time for your personal financial planning. Remember, planning is one part of the process, but tracking is a critical part in the on going process.

Only perfect financial planning will safeguard you for the 55/45 situations in your life...

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail him at:  finplancoach@gmail.com)

iSHIELD your financial future in seven ways....

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

iShield your financial future:

Inflation is on fire...The recent rise in fuel prices came as a rude shock for the common man and affluent alike. On the face of it, the rise is in only in the fuel prices. But the cascading effect will be felt all across the economy in various spheres. The rise can be felt in our day to day life starting with our food and vegetable prices, our daily commute and other services which are utilized. That's the impact of Inflation. When we look to plan our financial future we must consider the effect of inflation on our plans very carefully. Consider the following examples:

• Cost of college education now assumed @ Rs 7.5 lacs; after 15 years Rs 61 lacs.
• Cost of foreign education now assumed @ Rs 15 lacs; after 15 years Rs 1.23 crores.
• Wedding cost now assumed @ Rs 7.5 lacs; after 20 years Rs 1.23 crores.
• To retire now if one needs Rs 25 lacs, after 20 years Rs 4.10 crores.

The above future costs are based on assumed expected rates of growth of costs over the years and they are present a fair picture of things to come.

India, as we all know is on the verge of a viable long term economic growth journey. In any growing economy, inflation tends to be on the higher side given the fact that the consumption and spending increases substantially alongside the vibrant economic growth.



iShield or inflation shield your financial future in seven ways: 




1. Money should work as they do not grow on ZZZZZs:

Money neither grows nor beats inflation if it sleeps in a bank A/C.. Money should be deployed effectively to earn higher returns and most importantly should be able to beat the inflation over the longer run...After all its your money and it should work as hard as you.

2. Start investing early:

It's important to start investing early as the power of compounding (POC) is @ work very very silently.... POC is an effective and powerful tool to tackle the rising inflation and make better returns over the longer horizon. 

3. Start investing rightly:

 

Starting early alone is not important; the investing should be done rightly to take the long term advantage.

Consider this classic example:

100 shares of INFOSYS issued in the IPO in 1993 valued at Rs 9,500 would have become 12,800 shares valued at a whopping Rs 4.15 crore as on March 31, 2011. This is an astounding annual compounded growth rate of  59 %, with a total gain of 464,422 %.

Just investing is not enough, investing right is important to beat inflation and earn higher returns.

4. Fully insure @ the earliest and do it NOW:

Fully insure your and your family's health and life to the fullest possible extent and at the earliest. The delay will come at a definite cost owing to inflation and the age factor. Buying insurance @ early stages gives you the benefit of higher cover @ a lower cost...

5. Secure Children's future NOW:

 

Consider these points:

• Cost of college education now assumed @ Rs 7.5 lacs; after 15 years Rs 61 lacs.
• Cost of foreign education now assumed @ Rs 15 lacs; after 15 years Rs 1.23 crores.

The future cost of education could be mind boggling... both Indian and overseas. Its ideal to plan right now to tackle the future costs very effectively.

6. Secure your retirement NOW:

To retire now lets for a moment assume if one needs Rs 25 lacs, after 20 years the same would translate to Rs 4.10 crores. And that's inflation for you..... So start the plan now....

7. Make your financial plan NOW:

 A disciplined and well thought out financial plan outlining your financial goals and objectives is the right tool to take on inflation which is purely not in our control... A well made plan can fairly take you to the planned destination.

Rely on a financial planning coach to make a sold financial plan outlining your financial goals and objectives to take care of your financial future...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

Exit out of EMIs; get started with EMIs.......!!!!

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

Exit out of your EMIs... Get started with EMIs...


Surprised and confused???!!!!!!!!!

From Equated Monthly Installments (EMI towards loans)                to 

Easy Monthly Investments (towards achieving your financial goals)..........




Your Equated monthly installments can create fewer assets..... Your own house?! Good...... But rest of them? your sedan, LED TV etc... Not really....

But if you can work out your financial planning based on Easy monthly Investments (EMI) strategy with the guidance of a financial planning coach, it can help you create huge wealth as well as a very bright financial future for yourself and your family....... In effect you can create long lasting financial assets....

So, what is this Easy Monthly Investment? -

You invest a set sum every month towards a goal.. It can be for wealth creation, for child's future, your retirement etc..This works well in equity related investments over a longer periods of time.

Small drops indeed make an ocean of wealth:

Many things you can achieve through Easy Monthly Investments strategy:

1. Regular and periodic pre-set investment flows:

The set flow needs to be regular and periodic towards a goal which means no inconvenience to your regular cash flows.

2. Achieve optimum life cover for you and your family:

EMI strategy helps you in securing ample life cover for you and your family.

3. Long term wealth creation:

By investing a set sum in equities, you definitely can achieve a huge wealth creation over the longer periods.

4. Plan your retirement:

Create a retirement fund through EMI strategy from the younger days.

5. Ensure your child's future:

Take care of children education and future through EMI strategy.

Do talk to experts @ Money Avenues for starting Easy Monthly Investment plans to achieve your goals.

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

What's your priority in life?

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

Life is all about prioritizing.... Professional compulsions, family compulsions, societal compulsions, personal priorities dominate our lives. 

First things first in life......

Do check out a simple 5 step process to identify your personal priorities which will help you identity your priorities and thereafter the goals for attaining them.......

Here is a scenario presented to you..... Five different things are happening to you in your life @ the same time... Now prepare your list based on your priorities.....

1. You are faced with a changes in your career:

It's something which everyone goes through. We constantly evaluate the options and at times they have to be decided in a shorter time. Question is, what's the priority of this in the list?

2. Your best friend needs your support financially and morally: 

Friends become integral part of life and they don't often come to us seeking support. But what happens if they seek your financial support when you are addressing few other personal priorities?

3. Your kid's future requires immediate attention:

Kids are the future. So their future has to be secured financially. What happens when their needs have to be addressed?

4. Your personal future requires immediate attention:

YOU need YOU... @ all times.... Your personal future can be of your retirement, your dreams etc....

5. Your family requires immediate financial and emotional attention:

We are because of our family... So where do figure in the list?

 

This is a powerful test to determine your broad priorities in life, which can help you to identify goals and objectives and accordingly make a financial plan. The challenging aspect of this check list is that, some of them are non negotiable in nature. For eg., your child's future, your personal future, family etc...


Now make a list of priorities:

1. _____________________


2. _____________________


3. _____________________


4. _____________________


5. _____________________

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

When I'm 64..............

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

When I get older losing my hair,

Many years from now.
Will you still be sending me a valentine?

Birthday greetings, bottle of wine?

If I had been out till

Quarter to three

Would you lock the door?,

Will you still need me?

Will you still feed me?

When I'm Sixty Four.......


                - Immortal lines of "The Beatles"- When I'm 64

If you were to retire today and need Rs 25 lacs for the retirement fund, can you imagine what would you require to match the same amount 20 years later?

Rs 4.10 Crores

Do speak to your financial planning coach @ Money Avenues for retirement solutions... Mail @ finplancoach@gmail.com

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

If you have a great coach, you need not wait for 28 years....

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  finplancoach@gmail.com)

Unlike the World Cup victory which took 28 long years, Wealth Creation can happen much faster if you have a good financial planning coach to guide you...

 

And of course, it is possible only if you get a coach who is best in the business, like Guru Gary for the Indian team...

 

And how can a financial planning coach add value to your financial future? 

1. A good financial planning coach (FPC) will be a great listener: 

Listen... Listen more... Listen even more..

Key mantra for a great coach...

 

 

Important trait of a good coach is to listen to his wards. Listening is key the to understand the background and find out solutions. Same applies to a financial planning coach as well. An outstanding FPC will be able to listen to his prospects very patiently before embarking on any plan.

2. A great FPC will understand the needs first:

A good coach should understand the needs of his pupils first. Same is the case with a FPC; a client should first be assessed on the needs before taking things forward.

3. Assist you in identifying your life goals:

 

A good coach should assist his pupils on identifying the goals. It can vary from from one to one, but every one need goals to move forward in life.  A good FPC will also assist his clients on identifying the goals for their future, based on which the plans are made and firmed up.

4. Assist clients in making a robust financial plan: 

A coach will make a detailed plan for each of his players based on his understanding and their needs. Same is the case with a financial planning coach, who will be able to use his expertise and frame a comprehensive plan which will eventually benefit his clients.

5.Effective plan execution:

A role of a coach is to be a key observer and ensure effective implementation of the plan meant for his pupils. A financial planning coach's role is equally critical as he is the one who implements the plan to perfection.

6. Monitor and review the progress of the plan:

The role of a coach does not end with planning and implementation; it's a continuous process of review and monitor and any re-adjustments if required. As in the case of cricket or any other sport, the FPC constantly monitors and reviews the plan for effective implementation and working of the plan.

7. Lead to financial success:

The ultimate goal of a coach is to lead his team/student to roaring success. Like the guru Gary guiding the Indian team to eternal glory. Same is the case with a FPC. His role is to ensure financial success to his client and the family.


Do speak to your financial planning coach @ Money Avenues to know more about investment opportunities and financial planning solutions.

Do drop in mails to finplancoach@gmail.com

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at: finplancoach@gmail.com)