Updated: Jul 31, 2019
A good plan could come in handy in trying times during one’s journey to achieve life’s financial goals
Monsoon is up on us, in full swing in most part of India. For a large majority of people this is a welcome break from the scorching summer heat, but for some monsoon may also mean hardships. During the monsoon we are often forced to use the umbrella to protect us from the rains.
Just like the umbrella protects us from rains, a good financial plan could also protect an investor and his/her family during trying times.
During our lifetime, almost each one of us has faced some financial emergency when we needed a substantial sum of money at a short notice. Financial planners say that one could invest some amount in a liquid fund to build a corpus which could be used to tide over emergency situations including loss of income.
Of late, with the rate of interest on fixed deposits on the slide, there have been cases where retired, elderly people have nearly exhausted their retirement corpus. So, financial planners say that it’s extremely important for one to build a large enough retirement corpus. And one of the most useful investment avenue to build a retirement corpus is to use the SIP route in mutual funds, provided such investments match with the investor’s risk profile.
We also know about medical emergency.
The way the cost of healthcare is rising, a serious medical condition could set you back by several years towards achieving your life’s financial goals since that may cost you a large sum of money. Financial planners advice their clients to have a healthcare policy which could cover one’s entire family for all medical and healthcare related conditions.
Like an umbrella in the rains, financial planning could protect us during market’s cyclical and volatile phases.