Some people may not be willing to invest in seeking help from professional financial planner. Most of them may not see sufficient value Vs the fees paid. Such people are looking for simple financial plan for free.
With a view to help such people Konark team did some research on the the available tools on different website. We looked at mutual funds, insurance companies and brokerage house which provide financial tools on their websites. Based on our research we recommend website Personal Finance Calculators (www.freefincal.com). It provides a simple Do It Yourself financial plan (DIY Financial Planning). The tools provide for increase in annual savings which is missing in other tools. The tool has its limitations. One limitation is retirement savings do not start immediately. They are assumed to start from next year and end one year before retirement.
The recommended tool can be useful for people who can spare time and have inclination to do it oneself. Later if you find that you need professionally prepared plan, we are there to help you. Apart from overcoming tool's limitations the Konark's planner can add value through answering following questions:
1. What is the appropriate inflation (pre/post retirement) and returns (pre/post) to be assumed?
2. What is the appropriate risk the client need to take to achieve his/her goals?
3. How many months can my family manage in case of contingency?
4. Are my liabilities under control?
5. How is my family’s regular income distributed over expenses, taxes and savings?
6. Which investments are suitable for me? Which to keep? Which to change?
7. Which products are suitable for medical, personal accident insurance?
8. Is it possible to save on taxes?
9. How can I ensure being on track through periodic reviews?
In Optimum Plan Konark can offer additional value:
1. Multiple scenarios (What if ) analysis:
a. What if I want to retire early?
b. Can I start business and leave my job at some future point?
c. Can I start some hobby part time? And many more....
2. Optimize plan by leveraging surplus savings of future years. For more details please read How financial planner can add value?
3. If cash outflows are more than inflows then how to balance it?
4. As years progress risk taking capacity reduces so plan needs to accommodate lower risk capacity in future years.
5. How my asset allocations (i.e. distribution of investment in equity, debt and other classes) change over the years?
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