by Sumeet Vaid , Ffreedom Financial Planners, Mumbai
The countdown to
welcome 2014 is in full swing and many of us have already started making a list
of resolutions for a better life, good health and wealth.
However, sometimes,
the thrill of ushering in the New Year makes us disregard the need to relook at
significant matters, such as our finances and financial goals. To keep our
financial portfolio in good shape, it is crucial that we review our financial
health in the light of 2013’s market trends before we bid adieu to it.
Safe Investments..l
The year 2013 has
broken quite a few perceptions about ‘safe’ investments like gold and real
estate, and the change in the market dynamics has made it crucial to relook at
our financial plan. Here is a year-end checklist to keep your money matters
safe and sound in the coming year and in sync with your financial goal:
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| Sumeet Vaid , Ffreedom Financial Planners |
Not-so-safe
investments..
The meltdown of gold in
2013 was a big shock for many investors who considered the precious metal to be
a secure investment. The change in the financial environment also rendered the
yellow metal fragile in the investment market.
With this, comes a
lesson for the next year: Every investment comes with a certain amount of risk.
Investments should be made in the light of this crucial learning.
Illiquid assets..
Real estate is
another investment that is traditionally
and typically - perceived as one with ‘sureshot’ good returns.
However, 2013 has
negated this belief as well. There are many areas in several cities and towns
where property rates have either dropped or become stagnant. Investments like
property, which have low liquidity and require a large amount of capital,
should not be made on an impulse since it can take longer than expected to
yield good returns.
Debt trap..
For most of us,
credit cards are such as a magic wand -
one swipe & you get what you desire. But, like most things, it comes
with a flip side a high risk of running
into a debt trap. If you do not clear your credit card bills on time, or / if
you are in the vicious cycle of minimum payments, it is important that you devise
a plan to get yourself free from debt. In such a case, paying off the
outstanding in installments can be a good solution.
Income flow
analysis..
Take stock of your income flow through the
year & analyse whether it was
sufficient to meet your financial needs, or / did you struggle to pay your
bills. This income-expenditure study will give you a clear snapshot of your
monetary health, which will, in turn, direct you to issues (expenditure
exceeding income) that need to be addressed.
Financial goal
evaluation..
This assessment is a
must at the close of every year. It not only helps you know where you stand
financially, but also gives you a closer look at all your targets, whether
achieved or yet to be attained. Based on the evaluation, the targets for the
coming year can be set.
Financial loose
ends..
:Most of us end up
forgetting some parts of our overall financial plan. This could range from not
writing a will to changing the address on your communication.
Take this New Year as
an opportunity to review the various loose ends on your financial life and set
a time-frame to deal with it. For matters like estate planning, you can consult
your financial planner to help you prepare the required documents. Hopefully,
these pointers will help you streamline your finances and outline your expenditure
for the coming year.
The writer is founder
and CEO,
Ffreedom Financial Planners
MUMBAI [Corporate Office]
506/507, Morya Landmark II,
Near Infinity Mall, Link Road,
Andheri (W), Mumbai 400 053,
Boardline - +91 22 4222 4333,
Fax - +91 22 4222 4332,
Email - contact@ffreedom.in
CHENNAI
5,4th floor,Building No.53 Laxmi Tower,
Arcot Road, Kodambakkam,
Chennai – 600 024
Tel. No. : 09597614597
PUNE
4th Floor, Indra Memories,
Next to Samsung Plaza Showroom,
Sakalnagar, Baner Road,
Pune- 411007
Tel. No. : +91 8055769965
DELHI
C-460, Lower Ground Floor,
Chittaranjan Park,
New Delhi-110019
Tel. No. : 011-40520660 /
+91 9810559864
Web site: http://www.ffreedom.in/
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