Basically everybody needs to do a professional financial planning, but you definitely need to do so if, - you want to better manage your finances, but aren't sure where to start, - you don't have time to do your own financial planning, - you want a professional opinion about the plan you've developed, - you don't have sufficient expertise in certain areas such as investments, insurance, taxes or retirement planning. Financial planning is a very important tool that gives you a strategy for savings, allotment of monetary resources and investments, along with future benefits. Equity and insurance plays a major part in strategies pertaining to financial plans. Fortunefps guides you through this very critical part of your life. When there is proper long term planning for investments, rest assured that you have a secured future. Investing in equity is nothing but investment made in assets.
Insurance is the protection as well as investment which help in managing and reducing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest funds securely, so it can grow, and pay out when there’s a claim. Insurance protects your savings by ensuring that you do not pay for unforeseen emergencies out of your own savings. There are four primary insurances that need to be looked at for basic needs to be met. Health insurance is an easy one of the most critical types of insurance to have. Your being in good health is what allows you to work, earn money and otherwise enjoy life. A Life Insurance policy is very important, especially if you are married and/or have children. It will be a safety for your family. Property Insurance is one type of policy that should be mandatory especially when you have a mortgage. For many people, their home is the greatest asset so it is vital to adequately protect it with minimal expenditure. Another type of policy that is often mandatory is auto insurance. It is required by law that you have basic auto insurance that covers any liability occurring due to accidents. Instead of spending your savings you ensure that the insurance company pays for the damages.
Investment in mutual funds diversifies your risks and you can further divide your investment into equity funds and debt funds. Equity funds will invest in shares of companies, this comes with higher risks and higher return on your investment; debt funds invest in fixed return investment, which are safer but the rate of return on your investment will be on the lesser side. The ELSS is the only tax plan which comes with lesser lock in period of 3 years which is the scheme of mutual fund will help in tax planning under 80c up to 1.5 lacs and that can be done through SIP (systematic investment plan). Insurance can be one of the best investment decisions you will ever make.