Financial Planning

Financial Planning is about devising and preparing strategies to achieve your financial goals. It is an interactive and ongoing process shaped around your financial life cycle needs, for example, your children's education, buying your dream home, supporting your ageing parents and preparing for your retirement. Financial Planning can be divided into 3 areas:

Personal Risk Protection

Should the unfortunate happen such as, being struck by a major illness, disability, total permanent disability or death, what will happen to you and your family? Are you well protected against the unpredictability of life? When misfortunes happen, they can result in huge expenses incurred for hospitalisation, medication and often the situation is aggravated by the loss of personal income.
Personal risk protection is a vital element in financial planning. It looks into protecting you, and minimising erosion of your net worth and protecting your family from the consequences of those events.

Asset Accumulation

Have you ever thought of what you want in future? At what age do you think you would like to give up your career, retire and lead an easy life? What would you particularly like your lifestyle to be when you retire? Or perhaps you might want to think of the changes you would like to see in the next five to ten years? If you have children, the cost of their university education must surely be a cause of concern.
Asset Accumulation helps to provide for your future cash needs or prepare for your retirement by means of building your wealth through investments.

Asset Distribution

There are certain decisions in your life that are vital and which you have to make in advance of your death. Such decisions could involve the maintenance, disposal and use of your estate, cash, investments, business possessions and life insurance.
Asset Distribution assures that your estate is distributed efficiently according to your desires.
A comprehensive financial plan includes Cash Flow Planning, Personal Risk Management, Investment Management, Retirement Planning, Tax and Estate Planning. A change or more in any of these areas may affect you in achieving your financial goals.

As you can see, financial planning is a tedious process. You might prefer to start with your financial plan based on specific needs first and gradually build it to a comprehensive financial plan. The main focus of your financial plan should be setting realistic financial goals and objectives and achieving them.