Prabhat Investment Services

The process of financial planning involves working with a financial advisor or planner who can help you assess your current financial situation, identify your goals and priorities, and develop a personalized plan to achieve them. This may involve creating a budget, building an investment portfolio, establishing a retirement plan, developing a tax strategy, creating an estate plan, and managing risk through insurance and other financial products.

Financial planning is important as it helps to achieve financial goals and improve your overall financial well-being. It can also help you manage your finances more effectively, reduce financial stress, and increase your confidence in your ability to meet your financial obligations and achieve your long-term financial goals.

Types of Financial Planning

Cash Flow Planning and Budgeting

The first step in the financial planning process is to develop a budget and cash flow plan. This step is essential if you want to get control of your money and begin financial freedom. A budget lists a plan as to how you will spend your money each month. It is a tool to help you live within your means and make sure that your spending is aligned with your financial goals.

Insurance Planning

Insurance planning is the type of financial planning involving the assessment of your risk exposure and developing strategies to protect against or transfer that risk. The goal of insurance planning is to protect assets and income from the financial consequences of unexpected events.

Retirement Planning

Retirement planning helps you calculate how much money you need in your retirement kitty to live comfortably after you retire. This includes factors such as how long you expect to live, what your anticipated expenses will be, and what sort of lifestyle you want to maintain.

Investment Planning

Planning is more than just a financial plan. It’s a way to help you figure out how you want your money to work for you. You expect your money to be handy when you require it to fulfil your life goals at various milestones.

Tax planning

Tax planning refers to financial planning for tax efficiency. It aims to reduce one’s tax liabilities and optimally utilize tax exemptions, tax rebates, and benefits as much as possible. Tax planning includes making financial and business decisions to minimise the incidence of tax.