Section VI: Income Tax and Your Financial Planning

• Ques: How to get your financial planning done
• Ans: The steps in financial planning are:
  1. First of all write down all your present investments / assets value and their future cash inflow.
  2. Now write down your liabilities and its future cash flow month-wise/year-wise i.e. outstanding home loan and EMI of home loan.
  3. Identify your future goals i.e. house/car to buy or expenses like kids education, marriage.
  4. Calculate the future value of your cash flow keeping in view the inflation and return on your investment or maturity value.
  5. Now change the investments as per your goals out of the investment options available in the market.
  6. Make sure that the plan is tax efficient and all the risks are adequately covered.
  7. Get it verified by financial planners and keep it doing periodically at least annually.
• IT IS YOUR MONEY. YOU BETTER WATCH IT THAN IGNORE.