Financial Planning at different Life stages

WHY DO YOU NEED FINANCIAL PLAN? Life changing events, sometimes for the good such as getting married or joining a new job and sometimes for worse such as loosing the bread winner of the family or damage to the home by natural calamity will have financial implications on personal finance. A professional financial planner can help to analyze the implications on your financial decisions and make a prudent financial plan to achieve your life’s goals. The goals may cover areas such as buying a house, meeting lifestyle expenses, educating your child in India or abroad, meeting marriage expenses of your child, planning a dream vacation abroad or creating retirement corpus.
Life stage goals and Financial Planning: The financial needs will evolve with changes in income levels, increase of expenses, unique requirements of family members and post retirement expenses. The financial planner can support you in planning for various life stages. Some of them are as follows: Single & Earning (Age Group: 20-28)
  1. Post Graduation in India or Abroad
  2. Life style expenses for personal recreation
  3. Buying a Vehicle ( Car)
  4. Insurance needs for personal protection including health and personal accident
  5. Life Insurance needs for support to dependents
  6. Planning domestic/international vacations with friends
  7. Having a good investment strategy to build wealth for the future
Early Married Life (Age Group: 28-32)
  1. Increase in out of Pocket expenses for recreation and travelling with spouse
  2. Increase in contribution towards Household expenses
  3. Inflow of additional income if spouse is earning
  4. Buying a Vehicle (car)
  5. Insurance needs for personal protection including health and personal accident
  6. Life Insurance  for protection  and to support the financial  needs of dependents
  7. Investment for Future goals
  8. Planning for taxation
  9. Buying a house
Married With Kids (Age Group: 32-40)
  1. Increase in out of pocket expenses for recreation and travelling with family
  2. Increase in Household expenses
  3. Primary and Schooling Education expenditure
  4. Buying a Vehicle ( Car)
  5. Buying  a house
  6. Debt Management including planning for repayment of Loan
  7. Vacation Planning with Family
  8. Insurance needs for personal protection including health and personal accident
  9. Life Insurance needs for protection of future needs
  10. Investment Planning for Wealth Accumulation
  11. Planning for taxation
Middle Age (Age Group: 40-55)
  1. Increase in Household expenses
  2. Sending Child abroad for Higher  Education after Schooling
  3. Buying a Vehicle (Car)
  4. Buying  a house
  5. Debt Management including planning for repayment of Loan
  6. Vacation Planning with Family
  7. Insurance needs for personal protection including health and personal accident
  8. Life Insurance needs for protection of future needs
  9. Investment Planning for Wealth Accumulation
  10. Planning for taxation
  11. Planning for Childs Further Education in India or Abroad
  12. Child’s Future Planning i.e his/her Marriage planning
Pre-Retirement (Age Group: 55-60)
  1. Reduction in contribution for Household expenses as child is now financially independent
  2. Savings for Retirement
  3. Insurance needs for family protection including health and personal accident
  4. Life Insurance needs for protection of future needs
  5. Investment Planning for Wealth Accumulation
  6. Planning for taxation
  7. Vacation Planning
  8. Planning for a peaceful retirement
  9. Investment Planning for Regular flow of income during retirement
  10. Estate Planning
Post-Retirement (Age Group: 60+)
  1. Increase in Passive Income from planned Investments made earlier
  2. Vacation Planning
  3. Grandchildren may come on the scene, so inheritance planning.
  4. Estate Planning
  5. Charity and social work
Take guidance from a fee only certified financial planner or a SEBI registered investment adviser to manage your finances well at different stages of your life.

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