How to make a thorough financial plan | PNB MetLife Insurance

Avoid Guesswork While Planning Your Future

PNB MetLife 11-11-2016 11:28:33 AM
Avoid Guesswork While Planning Your Future

Making investments is wise, but not always. There have been more than enough instances in society where investors who made decisions to pump in money into certain sectors that were considered to be ‘safe’, ended up being sorry. Foresight into where you want to be in the future, is a good attribute, but if misplaced can prove to be detrimental. Read More

Financial planning requires expert knowledge of the financial world, the economy, government policies, etc. There are multiple aspects that have to go into planning your finances. Hence, it would be wise to refer to a knowledgeable individual who knows the lay of the land to help you in planning. Even with such expert professional backing it, factors such as changes in inflation and other economic factors can be almost impossible to predict, depending on the time frame that you are planning your investments for. The amount of risk keeps fluctuating. Investment decisions need to be backed up by data related to such fluctuations. 

The amount of investments made should also be closely tracked along with the returns from each avenue invested in. Returns should be judged based on the amount recovered per rupee invested. The amount of expenses that could accrue or compound over the years should also be brought into consideration. The standards and cost of living keeps increasing exponentially over the years, again subjected to market and economy conditions. It should be made sure that the investments made align perfectly with these factors. 

Considering the various factors of investment that are difficult to be quantified, predicted and projected, investors, especially young ones should priorities more on the risk avenues that are less risk averse, such as ulip plan, unit linked insurance plan, guaranteed income plan, etc. These make for decent returns along with safety of the money invested.