Financial Analysis and Planning – The need of the day

Amazing isn’t it? We all know how to make money but a very few know how to manage it! Come February -March and suddenly we see people waking up for the tax-related investments. It is just the reaction in the form of ad-hoc investments and short term perspective without any analysis and Financial Planning. The investments need to be done based on:

A customized Financial Plan is created taking into account all of the above factors. This takes care of tax planning as well as other optimum investment avenues for the current scenario. The biggest advantage of proper planning is that all the needs of any individual are planned for. The individual knows exactly where he or she stands and how one needs to invest to achieve their financial goals. This is a disciplined investment strategy, wherein even small sums invested for a considerable time will result in a substantial corpus.

For example, a small sum of Rs. 5000 per month invested at a rate of 10% for a period of 20 years will generate a healthy corpus of Rs. 38,28,485 at the end of the term! At the same time, investing Rs 10,000 per month for 10 years will only yield Rs. 20,65,520. The key lies in discipline, proper planning, and starting early. So, instead of a short-term perspective of just tax saving, doing planned investments will not only save taxes but also help in long term wealth generation.