Let us move to our next part that is 3 baskets of money management.
You must gain control of your money or the lack of it, will forever control you
What are the 3 Baskets of Money Management? ,
The 3 baskets of money management are: ,
1) Tax Planning ,
2) Protection Planning ,
3) Goal Based Financial Planning ,
Tax Planning: You must ensure proper Tax Planning and finally get more net post tax returns on your overall portfolio. You may consider various instruments like PPF, ELSS, NPS etc while doing your Tax Planning ,
To know more and get in depth knowledge you can visit our website www.alpashah.in and join the online course on Tax planning.
Protection Planning: The most important aspect about holistic Financial Planning is to protect yourself and all the dependents too…. Perfect Life Insurance, Mediclaim, CI , Cancer protection & Succession Planning must be done adequately
To know more and get the in-depth knowledge You can visit our website www.alpashah.in and join the online Course on Protection planning.
Goal Based Financial Planning: Right now, we are going through the course and various modules of Goal Based Financial Planning.
Let us take a look at the different products which comes under this category:
1) Pension: A pension or a retirement plan is a type of investment plan, which help you to accumulate a part of your savings for a long-term period so that you can have secured financial future. Pension plan helps you to deal with the uncertainties post retirement and ensures a steady flow of income after retirement. Even a person who has good amount of savings, Pension Plan is nevertheless important.
2) Real Estate: Everyone should own at least one house. One of the many benefits of investing in real estate is being able to generate wealth through appreciation and hedging against inflation. It can also provide cash flow with passive income from rental properties. These are the reasons why real estate should be a key component of your investment portfolio.
3) Gold: There are a plethora of precious metals, but gold is placed in high regard as an investment. Due to some influencing factors such as high liquidity in any part of the world . Gold is one of the most preferred investments in India. Gold investment can be done in many forms like buying jewellery, coins, bars, gold ETFs, Gold funds, sovereign gold bond scheme, etc. Once you have made your mind to invest in gold, you should decide the way of investing meticulously.
4) Mutual Fund: It is very difficult for many individuals to manage their own money. It is tough to study and analyse companies and transact to buy /sell different securities on one’s own. A mutual fund is an investment vehicle in which investors pool money to earn returns over a period of time. The money collected is managed by a fund manager who is an investment professional. The money is invested in different securities such as bonds, stocks, gold and other assets and seek to provide potential returns. Any gains or losses that come in from these investments are shared by investors in proportion to their contribution to the fund. MF is managed in a very professional manner with transparency and regulated by Govt authorities.
5) Equity: Investing in equity shares helps to beat the inflationary pressure by delivering a higher rate of return as compared to other havens. However, you need to consider other complexities before investing. Equitiy has delivered superior returns over a long term compared to other asset class. With equity investment you can think of protecting your wealth from getting lost to rising inflation and simultaneously earn a higher real rate of return.
