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Right Financial Advisor Can Help Money Grow

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Right Financial Advisor Can Help Money Grow
Vishesh Gandhi - 18 March 2019

The world has become a field of cutthroat competition, where everyone is running to make more money, but hardly a handful know how to manage it diligently and with a proper planning.

Whether the problem is saving, debt, or investing, we all have challenges in reaching our financial goals. The most important thing is to not let them limit you. We just need proper guidance, genuine advice and timely services to make our money work in our favour.

44-year-old Sandeep Rathod, Vice President-Finance Department, DBS Bank had clear goals and objectives in his mind, but wanted the right partner who could help him to execute his financial plans.

His primary requirement was to plan for his daughter, Vaidehi’s education, followed by timely vacations, retirement planning and a contingency plan to meet sudden triggers, all the while keeping in mind the inflation factor.

Firstly, we advised him to secure his family comprising of wife and a daughter, from any financial losses that may arise in case of any sudden unprecedented event. Hence, we bought a term insurance cover, which would be sufficient to meet Vaidehi’s entire education, marriage expenses, corpus for his wife to sustain all basic expenses throughout her life, and some additional corpus to meet sudden unplanned expenses.

We also took a Mediclaim cover with a family floater option for securing the family against medical expenses to an extent of Rs25 lakh, covering all major illness and pre and post-hospitalisation expenses.

To meet Vaidehi’s education and marriage expenses, we have started SIPs across various category of funds, and depending on the time frame we have to meet those expenses. We have also made some investments in corporate fixed deposits and debt mutual funds under his wife’s name to get tax efficient returns. If in any case, we have some shortfalls due to volatility in equity market that may deviate SIP returns as planned.

We have made some investments in arbitrage mutual funds and bank fixed deposits with transfer-in options to meet his requirement of Contingency fund planning.

We have also made lump sum investments in mutual funds with well-diversified schemes across each categories in equity mutual funds to target his vacation planning and expenses at regular intervals.

Though he has decent retiral perks and benefits in the form of EPFs and other such savings, which may be a decent corpus for his retirement. But, we mapped some SIPs and investments toward his retirement corpus to build an inflation-proof kitty for his monthly spending post his retirement, along with some corpus to meet medical emergencies which may not be sufficient or covered under his mediclaim plans.

We carry out a periodic review and assessment to keep a check on proceedings of our investments, thereby, tracking his investments. We also, ensure alterations in our strategies if there are any major disruption through some political, global or natural events that may disturb the composition of those investments and which may in turn defer the returns from the targeted plan.

We have also recently advised him to draft Will and get notarized and registered to fence all his investments both financial and physical investments like properties and gold to secure them for his legal heirs.

Vishesh Gandhi Founder & Managing Partner Make My Wealth LLP

Disclaimer

Financial Planning of Sandeep Rathod is based on the “personal opinion and experience” of Vishesh Gandhi and that it should not be considered professional financial investment advice. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.

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