Financial planning, Long term Saving plans

Wealth Creation with Long Term saving plans

If you are looking forward to wealth creation in your life, you must use a long term saving plan to achieve your goals.

Most often people go for these retirement funds which are usually long term stable plans so they can have all the benefits at the end of their working years. Also, there are other Mutual funds schemes which can use as per their investment and risk taking. Wealthcare India offers long term saving plans for their clients that are sure to lead you with better future wealth creation.

Why there is a need of Long term Savings Plan?

Any individual want to accomplish many goals in his life, for which he either saves, or opts for loan. Of course, it any day better to go for savings.

However, these savings have to be pre planned and goal oriented, so that one has ample time, to make savings in order to achieve the required amount before D Day.

How do you construct your Long Term Savings Plan?

  1. Start with listing out all your goals, be it, retirement, child’s education, marriage, vacation, etc.
  2. Quantify your goals, how much money you would need and in what frequency, for the completion of that goal.
  3. Make a note of your income and expenditures. You’ll know how much you can afford to invest and review the goal amount accordingly.
  4. Know your risk profile. You can draw a financial plan and make investments accordingly, only when you know how much risk you can afford to take. Here is where role of advisor comes in.
  5. With the help of a financial advisor, you can not only quantify your goals easily, but also make sure that it is within your risk capacity.
  6. Further, your advisor can help you with constructing a financial plan, by suggesting suitable investment options, depending upon your risk appetite.

How to establish goals and quantify them?

One can establish goals on the basis of time period, long term or short term. For example, your retirement, your ward’s marriage is long term. However, your yearly vacation, spending on gadgets, is short term.

Quantification of your goals is a necessary step for long term planning. Add numbers to your goals – both long and short term- How much will you spend, if you’ve spent it today?

Long Term Saving Plans with Mutual Fund SIPs:

There are many Mutual Fund SIP’s running in market that offers long term wealth creation with 10% yearly returns which goes on adding wealth every year culminating into large sum at the end of the term respectively.

Consider this:

If you invest Rs. 2000, here’s how your corpus will get accumulated over time ( with different rates of interests):

SIP Investment

(Data Source: wealthcareindia.com )

Higher, the CAGR, higher will be the corpus amount. However, higher will be the risk.

So make sure, your choice of funds is aligned to your risk appetite. Further, you should have good number of years in hand, before the goal year.

Further, the more you invest monthly, the larger will be the corpus.

For example, if you invest Rs. 10,000 monthly, instead of Rs. 2000, here’s how your investments will get affected:

SIP Investment

(Data Source: wealthcareindia.com )

Further, there are also top ups there which you can choose to add more wealth in your monthly investments. SIPs are more sophisticated way of investing which are flexible and offer better returns by lowering the risks as well as getting the benefits of Rupee averaging in buying units on monthly basis.

There are few assumptions that must be followed and regularly checked for achieving those goals:

  • Invest on regular basis without affecting monthly deposits and have surplus to manage other expenses in check so your long term plans are affected in any manner.
  • Investors must not take money from the total investment and save them for their last years only.
  • Yearly return from funds around 10-15% are there and one must set the minimum rates to make sure they are on their path otherwise change the funds accordingly.
  • Avoid any disturbance in your longer term plans financially as it may affect the final amount.
  • Take guidance for regularly monitoring the performance of the funds with respect to the market conditions.
  • Certified financial planner uses their skills and investors ideas to build a financial goal that leads the right path for large wealth creation. To achieve long term financial goals individuals must focus on their career for earning sufficiently for their families and future simultaneously. Only if they have a surplus, investment continues in regular manner whereas there will few who will earn limited income based on their specific skills. While businessman look for yearly investment in these funds and use the rest of the year in improving their earning potential.

Conclusion

Market is full of volatile changes so there must be regular checks that one should use to be on their path for achieving financial goals in specified manner. Experts guidance is must as they can understand the ups and down in funds invested and taking the decisions when taking out the money from the funds if required. There comes a time when you will be required to have patience to let the amount mature from your investment with few lows and gain better during the higher scenarios.

With Wealthcare India you will get a platform for complete information and guidance in these comprehensive mutual funds investment and saving plans to make your future life easier. Our 

Certified professionals have the capability to turn your investment in large wealth creation by using them in better funds respectively. We have successfully placed client’s funds with better returns for more than 10 years experience in making Wealth Care one of the leading Wealth Management firm in the Delhi NCR area.

Mukesh Gupta

Wealthcare has been promoted by Mr. Mukesh Gupta who is a Fellow Chartered Accountant (FCA), Certified Financial Planner (CFP) and Certified Public Financial Planner. He has over 22-years experience in the Wealth management industry. He previously worked with Birla Sunlife Group. He occasionally writes for newspapers and appears on television for matters related to personal finance and Wealth management.
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