Best financial advisor in Kochi, Kerala
Are you looking for the best financial advisor/wealth manager in Kochi, Kerala?? Here is why you are on the right page.At Square league, we are a team of Ex Bankers who have come together on a common platform to provide our clients a world class financial advisory and wealth management keeping the superlative interests of all stake holders in mind.
Maintaining financial health
Financial planning is a step-by-step approach to meet one’s life goals and maintain financial health. 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. Determine the status of your
current finances, viz., your income, expenses, debt, savings and investments. This is the first step in financial planning, as it gives you a good sense on the state of your finances and ways to improve.
How to create a successful financial plan??
FINANCIAL STABILITY INDEX
Financial stability does not always mean wealth, but financial sufficiency as defined by each person. In order to build a financial stability, it normally takes time by collecting enough funds for general living in the future and emergency incidents that may occur. Using the FSI tool one can measure the Financial Stability of an individual.
Understanding risk profile
The aim of the risk profiler is to gauge the optimal level of investment risk for an investor based on his required risk, risk tolerance and attitude. Your risk profile is essentially determined by objective factors (age, income,
number of dependents, security of your job) and subjective factors (risk behaviour intrinsic to each individual's psychology). Risk profiling, put simply, calculates the amount of risk you are ready to handle in case of a downturn. The output of the risk profiler forms the basis of a tailored financial plan that better reflects the investor’s perception of the acceptable trade-off between risk and return. An aggressive investor, or one with a high-risk tolerance, is more likely to risk losing money in order to get better results. A conservative investor, or one with a low-risk tolerance, tends to favour investments that will preserve his or her original investment.
Investments need to be carefully planned and designed as per your risk taking capacities. This will affect the returns and hence the allocation of assets in your investment portfolio. Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, cash and cash equivalent, gold, mutual fund, real estate etc. The process of determining which mix of assets to hold in the investment
portfolio is a very personal one. The asset allocation that works best at any given point in life will depend largely on time horizon and ability to tolerate risk. Different asset class move in different directions. All types of asset classes hardly perform in tandem. One might assume that it is best to invest in mutual funds that are performing really well at a particular time with an aim to time the market. However, it is quite challenging for any individual to predict in which direction any asset class would move at any given point of time. For instance, when equities may be up, gold investment might go down and vice versa. So, it makes sense to allocate investments in a mix of asset classes. This is done so that if one set of asset classes or funds underperforms, the other asset
classes will balance the underperformance. Investing one’s portfolio in just one asset class or mutual fund scheme can be extremely risky. However, if an investor’s wealth is spread across asset classes, they tend to make better
Ask yourself: ‘what are the different financial goals I wish to achieve in life?’ Write them on a piece of paper. Don’t hesitate to put down any goal because no goal is too small or too big and channelize your finance as per priority. Planning ahead by setting financial goals is crucial for the immediate and long-term financial success of any individual. We tend to become more realistic about our finances and align it in line with the time frame in which we wish to achieve our goals. Depending on the stage of your life and your career, you might have different priorities that will affect your financial goals. List all your goals and mention the time frame in which you wish to achieve these goals. Using the ‘SMART’ strategy can help you set financial goals easily. SMART is an acronym for Specific, Measurable, Achievable, Realistic, Time-bound goals.
The rise in the price of everyday items means that if you want to maintain or increase your current standard of living in the future, you need to create a sufficient corpus of wealth. You may also want to purchase a better car or a new house in the future. All this requires money, and it merely highlights the importance of wealth creation. It is possible to achieve these goals by carefully investing your money in the right avenues.
People, throughout their lives, work hard to create assets for their loved ones. But they don't plan the way the assets should be passed on to the next generation. An estate is all of the property a person owns or controls. The property in one's estate may consist of financial assets (e.g., bank accounts, stocks, bonds, or business interests), tangible personal assets (e.g., artwork, collectibles, or vehicles), immovable property (e.g., residential real estate, tea/timber rights), and intellectual property (e.g., royalties). Estate planning in simple terms refers to the passing assets / investments down from one generation to another. You decide how much of your estate – be it property(s), car(s), personal accolades, financial investments, etc. – you want to pass on to whom and how, after your demise. Thinking about your legacy and shaping your estate plan is an important part of the on-going financial planning process.
An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. A good estate plan is comprised of five key elements: Will, Trust(s), Power of Attorney, Health Care or Medical Directive and Beneficiary Designation.