The new financial year has just commenced, and now is the right time to plan your investments for the year ahead. Our lives are in a constant state of flux with ever-evolving goals. If you cannot take the time out to review your past investments and plan ahead, your financial future could be affected for the worse. Here’s a simple financial checklist that will help you plan your finances for the year ahead: –
Review Your Life Goals
Over the last few years, you may have already achieved some of your life goals and you may want to set new goals for the life ahead. Identify new life goals and categorize them into short term, medium term or long term goals. Determining your goals and the time frame required to achieve them will help you plan your investments in a systematic manner. In order to meet your life goals successfully, you need to align your investments and funds to meet these goals, taking into consideration factors such as your age, financial health, risk appetite and the time-frame.
Review Your Investment Portfolio
Once your life goals are clear, the next step is to channelize your finances towards achieving those goals. Review your previous investments to make sure that they are in sync with your current life goals. If you have invested in plans like Unit Linked Insurance Plan (ULIP) or Mutual Funds, you may want to alter the asset allocation or you may want to move your funds from debt to equity to increase your returns.
Plan Your Taxes Well
Tax planning is a crucial aspect of financial planning and there’s no better time to do it than the beginning of the financial year. Most people start making hasty investments at the last minute in a bid to save taxes. However, such hasty decisions may be counterproductive and may hinder your long term financial goals. By estimating your income for the year you can invest your income in a tax -efficient way and earn maximum returns. Also, don’t forget to rethink your tax saving strategy based on the recent changes announced in the budget earlier this year. You may need to re-evaluate your existing financial plan to factor in the impact of the new tax structure on your investments.
Review Your Insurance Requirements
Ideally, Life Insurance and Health Insurance should also be a part of your investment portfolio. However, by investing in hybrid investment plans like ULIPs, you can enjoy the dual benefits of life insurance and market-linked investments. At Finserv MARKETS, you can choose from a selection of new-age ULIP plans that provide more value on your investments and are cost effective. To invest in Bajaj Allianz ULIPs and health insurance plans, visit Finserv MARKETS and choose the one that fits your needs.
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