Solutions
Financial Planning
Benefits of financial planning?
It helps you to:
Increase your savings
It may be possible to save money without having a financial plan. But it may not be the most efficient way to go about it. When you create a financial plan, you get a good deal of insight into your income and expenses. You can track and cut down your costs consciously. This automatically increases your savings in the long run.
Enjoy a better standard of living
Most people assume that they would have to sacrifice their standard of living if their monthly bills and EMI repayments are to be addressed. On the contrary, with a good financial plan, you would not need to compromise your lifestyle. It is possible to achieve your goals while living in relative comfort.
Be prepared for emergencies
Creating an emergency fund is a critical aspect of financial planning. Here, you need to ensure that you have a fund that is equal to at least 6 months of your monthly salary. This way, you don’t have to worry about procuring funds in case of a family emergency or a job loss. The emergency fund can help you pay for varied expenses on time.
Attain peace of mind
With adequate funds at hand, you can cover your monthly expenses, invest for your future goals and splurge a little for yourself and your family, without worry. Financial planning helps you manage your money efficiently and enjoy peace of mind. Don’t worry if you have not yet reached this stage. If you are on the path of financial planning, the destination of financial peace is not very far away.
Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.
Retirement Planning
Retirement seems like a distant dream. Especially in India, the concept of retirement planning is still alien. Not many people plan specifically for their retirement. Yet, if one wants to live a dignified and comfortable life in your latter days/second innings, it is imperative to plan for a corpus for retirement with the help of a sound financial plan.
Since India does not offer social security, the onus is on the individuals to plan for their retirement. To some extent, schemes like employee provident funds can help cover retirement expenses for salaried individuals, but business people and independent professionals need to look to alternatives.
There are many avenues that can help you build funds towards retirement, such as public provident funds, mutual funds, Stocks etc. The earlier one incorporates a retirement corpus into your financial planning, the more he will be able to save. This can help in emerging as a wealthy senior citizen, as opposed to being dependent on your children or a family member.
The most common questions that persist in people’s minds that are at or near retirement are:
- What type of lifestyle can I expect to have?
- Will I have enough monthly income to meet my monthly expenses?
- Will my retirement nest egg last throughout my lifetime?
- What about healthcare?
- What about Long-Term Care?
- How do I minimize my taxes?
Tips for Smart Retirement Planning
1. Start as soon as you can. In fact, start saving for retirement now.
2. Diversify your investments. Do not put all your money into one bucket, although it may seem very tempting.
3. Even if you are a risk-averse investor, put some money in equity mutual funds so you can benefit from compounding.
4. Save your bonuses instead of splurging them on vacations and impulsive buys
5. Increase your investment and savings amount every year, in tandem with the hikes you receive.
6. Talk to your partner or spouse about their retirement plan, and whether it would be sensible to link both.
If you want to retire in style, with dignity, and maintain your ongoing lifestyle, you will need to plan in advance, we at Unnathi Wealth have been helping individuals with their Retirement Planning, please speak to our experts to have a complete retirement plan.
Retirement maybe 25 or 30 years in the future. But that does not mean that one plans for it when he retires. To enjoy a happy and comfortable retired life, one need to start building their safety net right now. Planning at an early stage in life can help secure one’s future against financial uncertainties. Also, one can invest lesser amounts if they start early and gain from the power of compounding which helps to build a large enough corpus over the 25-30 year period.
Children’s Education Planning
Even though education is the most important priority for parents, the costs are a major concern. They shell out a large portion of their savings to provide the best education.
Here are some questions we help plan together-
- When should I start saving for my child’s future?
- How much should I save for my child’s higher education in India or overseas?
- Should I invest in children’s endowment plans for their education?
- Do I need to save for other milestones for my children or should they plan for it?
Our children are most precious to us and we want the best for them, especially when it comes to their education. We help you curate the best investment solutions to optimise returns for your children’s milestones.
Planning early can go a long way in children’s education goals, especially if you want your child to attend good institutions abroad. You must begin planning soon as the education costs are only on the rise.
We at Unnathi Wealth have been helping parents in their children’s education planning, talk to our experts to know more about this.
“Education is the most powerful weapon which you can use to change the world”
Nelson Mandela
It’s every parent’s dream to give the best of education to their children, and the best always costs a lot of money, with inflation being the highest in education, planning can go a long way in helping education needs.
“Education is the key to unlocking the world, a passport to freedom” – Oprah Winfrey.
As parents, it is natural to give the very best for your child – the best schooling, best opportunities in life, etc. But you see, education is one of the best gifts your children can receive.
And as Indians, it is strongly ingrained in us that education is everything, and we want our kids to go to the top schools for their chosen fields.
Asset/House Purchase Planning
Buying a dream home is an emotional decision, this emotional decision backed by a financial plan would help in making this dream possible.
Buying a home is easier said than done. The cost of real estate prices in most cities is already touching the moon. one will have to push his limits to buy his dream home. If one does not inherit a huge amount of money, they will have to take a home loan to buy their dream home. In that case, there will be a significant amount of interest (usually more than the principal amount of the home loan) that needs to be paid, and they will end up devoting a major chunk of their monthly income towards the EMI.
All this can be a stressful financial experience. So, it is important that one work’s on a strategy to fulfill this dream. At Unnathi Wealth we have our experts who will explain the steps that will help you invest your money smartly to arrange the required funds to buy your dream home.
Tax Planning
Advantages of tax planning:
1. To minimise litigation: To litigate is to resolve tax disputes. There is often friction between tax collectors and taxpayers as the former attempts to extract the maximum amount possible while the latter desires to keep their tax liability to a minimum. Minimising litigation saves the taxpayer from legal liabilities.
2. To reduce tax liabilities: Every taxpayer wishes to reduce their tax burden and save money for their future. You can reduce your payable tax by arranging your investments within the various benefits offered under the Income Tax Act, 1961. The Act offers many tax planning investment schemes that can significantly reduce your tax liability.
3. To leverage productivity: One of the core tax planning objectives is channelising funds from taxable sources to different income-generating plans. This ensures optimal utilisation of funds for productive causes.
Types of Tax Planning
Most people merely perceive tax planning as a process that helps them reduce their tax liabilities. However, it is also about investing in the right securities at the right time to achieve your financial goals.
Following are some of the various methods of tax planning:
Short-range tax planning
Under this method, tax planning is thought of and executed at the end of the fiscal year. Investors resort to this planning in an attempt to search for ways to limit their tax liability legally when the financial year comes to an end. This method does not partake long-term commitments. However, it can still promote substantial tax savings.
Long-term tax planning
This plan is chalked out at the beginning of the fiscal and the taxpayer follows this plan throughout the year. Unlike short-range tax planning, you might not be offered with immediate tax benefits but it can prove useful in the long run.
Permissive tax planning
This method involves planning under various provisions of the Indian taxation laws. Tax planning in India offers several provisions such as deductions, exemptions, contributions, and incentives. For instance, Section 80C of the Income Tax Act, 1961, offers several types of deductions on various tax-saving instruments.
Purposive tax planning
Purposive tax planning involves using tax-saver instruments with a specific purpose in mind. This ensures that you obtain optimal benefits from your investments. This includes accurately selecting the appropriate investments, creating an apt agenda to replace assets (if required), and diversification of business and income assets based on your residential status.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax laws. The primary concept of tax planning is to save money and mitigate one’s tax burden.
Taxes can eat into your annual earnings. To counter this, tax planning is a legitimate way of reducing your tax liabilities in any given financial year. It helps you utilise the tax exemptions, deductions, and benefits offered by the authorities in the best possible way to minimise your liability.
Estate/Succession Planning
We work with professionals in designing the best plan which can help in protecting the wealth and passing it on to the next generation.
Why should your children have to wait to receive their inheritance if you are in a position to give them a significant portion of it now? You and your spouse have more than enough money for retirement and would like to see your children and grandchildren enjoy life and make the most of the wealth you have created over the years. But there are a lot of questions you ask yourself. What plan suits the best for succession or legacy planning? Is it a will, a living trust or a gift, it is important to identify appropriate structures to transmit your estate, taking into account the nature of the estate and the composition of beneficiaries, based on your determination of “who” gets “what” and “when”.
New Start-up Planning
Entrepreneurship is exciting, but starting your own business full-time without the right financial footing can leave you with regrets, we at Unnathi Wealth have been guiding the budding entrepreneurs on the financial road map to ensure that they have a smooth transition and don’t have to stress on managing their cash flows.
Making the leap from a stable job to starting your own full-time business is a big move. You gain your freedom and more control over your schedule and projects. Yet you also assume complete responsibility for your own financial future.
If you thinking about making the move to a full-time entrepreneurial career, preparing your finances can alleviate pressure and help you focus on building your business.
NRI Investments
We believe that NRI Investment Opportunities are unique and their compliance and tax planning is different. At Unnathi Wealth, we cater to NRI Clients and recommend investment options most suitable to their needs, after considering the objectives, KYC requirements and Taxation.
As one of the fastest-growing economies, India offers NRIs a wide range of investment opportunities across a variety of asset classes. With investment opportunities ranging from equity, fixed income, real estate and more, India has continued standing as an attractive investment destination.
NRIs keen to explore investment opportunities in Indian capital markets can choose from various investment avenues such as India dedicated Mutual Funds Schemes, Portfolio Investment Schemes and other eligible securities. Investment offerings to NRI clients are customized to their risk profile and investment objectives.
Insurance Planning/Risk Management
Risk management is the process of identifying, analyzing, and accepting or mitigating of uncertainty in investment decisions. Risk is inseparable from return.
Risk management helps in identifying, assessing and controlling threats to your capital, earnings and savings. Financial threats or risks come from a myriad of sources, including financial uncertainty, strategic management errors, legal liabilities, accidents and natural disasters.
We are Unnathi Wealth use a few strategies to reduce/manage investment risk and they are
1. Invest in a diversified portfolio of different investments
2. Allocating your capital to different asset classes according to your desired risk-return profile.
3. Rupee-cost averaging to remove the risk of Market timing.
In Risk Management, Insurance is an important part of any financial plan. It transfers risk away from the individual in exchange for a premium payment. It is very valuable in some key areas to help avoid financial devastation. Buying insurance is important as it ensures that you are financially secure to face any type of problem in life
At Unnathi Wealth we not only look at managing investment risk, we also look at providing financial security for one’s family, here we use insurance products like term plans and health insurance to secure the family. Insurance is key in being able to focus on the important things in life, because it will ensure financial security for you and your family should anything unfortunate happen.
Aim of risk management is to reduce financial uncertainty and make accidental loss manageable.
Risk is an integral part of our lives. There is risk in even the most mundane of tasks such as driving to work each day or taking up a new project at work. Similarly, when it comes to investments, risks are unavoidable. If an asset class offers very good returns, it comes with a high-risk disclaimer, on the other hand, if you seek out an investment that carries little or no risk, the returns are going to be low too.
When you have set out to achieve your long-term goals through investing, you must accept the fact that risks are a constant. Once you have assessed your own ability to tolerate the various risks you are going to be exposed to, you must attempt to enhance the value of your investment through prudent risk management. The key to investing wisely is not eliminating risk but garnering the ability to manage it
Wealth Protection & Preservation
Wealth preservation can often be even more difficult than wealth creation. Preserving your legacy requires you to think about issues including potential professional liabilities and key man risks, amongst others. We at Unnathi Wealth can help you identify suitable ways to preserve your estate and ring-fence it from such risks.
Address
1943, 1st Main, 13th Crs, RPC Layout, Vijayanagar 2nd Stage, Bangalore,
Karnataka 560040
praveenhk@unnathiwealth.com