Generation Millennials (Gen M) seeking financial help from an experienced financial planner should first share their financial capabilities, family requirements, current tax structure and Wishlist of buying a house with less EMI burden, accumulate wealth for family’s requirements like son/daughter’s Study, marriage, medical requirements etc. and finally to accumulate wealth for Post Retirement Monthly Income (Retirement Corpus Planning) with the financial planner. They should know the pros and cons of all the requirements and expect from the planner to provide a well thought of comprehensive financial plan breaking it into segments relating them which can be achieved or fulfilled with help of own savings and possible future savings in the balance period of service or working period of around 15 to 30 years till retirement. Goals are to be set looking at the excess monthly earnings over and above the regular monthly family expenses categorizing as Near Term, Short Term, Medium Term and Long Term. Generation Millennials are vulnerable to commit mistakes as they may be having good earnings as well as increasing expenditures and with a proper planning, they can create a very handsome corpus with the help of POWER OF COMPOUNDING within a period of around 15 to 30 years till retirement without taking pressure on their monthly income. So proper financial planning is required at this stage. They should discuss their Wishlist/ Goals/ Financial Requirements with planner to know/ clarify the following:
1. Whether Goal set achievable or not within the balance period of Service and how much to be contributed for which Goals?
2. Whether it will be turning into payment of higher tax as any incremental income will be taxed at highest rate of Slab?
3. Whether it is possible to plan differently to achieve the goal generating higher income with lesser tax as compared with other similar options? (Saving of Tax is also as good as earning)
4. Whether due to lack of knowledge, it is turning to an over-conscious / conservative or highly aggressive situation to face unnecessary burdens?
For better planning in achieving the Wishlist/Goal/ Financial Requirements, a good planner will help them to guide on the above required parameters and align them while planning for the Generation Millennials. Planner should also provide the practical/actual work path to implement their plan and review the same periodically so that the Plan is not over hyped / anxious or at the same time due to poor practical knowledge, the plan is not able to give the required result. Keeping all this in mind, we have created a calculator considering all above parameters to check and know the details in advance. Millennials to feed their own possible data for planning for their Goals step-b-step to get the final financial planning result on-line and to download the report for self-reference and for further consultation by requesting a meeting/consultation with experts with a very nominal fee.
The first and foremost thing to do is to jot down and calculate the judicious regular Monthly Expenses which is to be kept aside in the bank account having Sweep-in-Sweep-out facility, so that financing the immediate requirement of monthly expenses will be achieved instantly and there will not be any idle money for this as it will also earn interest similar to FDs. If you are a very good planner, then incur your day-to-day expenditure through a Credit Card which provides 50 days to 60 days credit facility and on or before the expiry of the credit period, pay the amount to credit card company. This will help you achieving two things, one you got credit of 50 to 60 days free of cost and secondly you earned interest on the sweep-in amount for the expenses incurred on Credit Card for the same period. For Help in opening Salary Account with Sweep-in, Sweep-out facility and other attractive facilities, Click Here.
Calculate the total monthly earning from all sources to know your financial capabilities. After calculating the total monthly earnings, deduct the total Monthly Expenses to find the Excess Earning which can be spared without disturbing the day-to-day life. Since this Excess Earning will keep on adding every month, first it will be advisable to keep the same in little more higher income financial product/instrument than the swipe-in swipe-out income. Till the time you are not finding any such higher income instrument, keep the same in your bank account with swipe-in swipe-out facility so that it will earn at least @ FD rate of 6% or so. Secondly create one or more Smart SIP Plus or SIP Plus or a Smart SIP cycle or in combination depending upon your excess monthly earning amount, which will earn on an average of 15% to 18% per annum. As these are capable of adjusting automatically to the Ups & DOWNs of the market, these only can ensure to achieve superior return than the normal SIP and as well as Recurring Deposits (RDs). To take advantage of these Advanced Well-Tested Tools free of cost, Click Here to register with our partner entity. Thirdly, even after creating the required number of monthly investment cycles taking the help of above tools, if you still have some excess monthly earnings or if you already have some excess earnings from previous months and you want to park / invest one time for short term, then it is advisable to park in ARBITRAGE FUND as it is more tax efficient with similar safety, liquidity and little higher paying Financial Instruments than Liquid Fund, FDs, RDs and Swipe-in and Sweep-out. Click Here to access the basket of 10 best curated Arbitrage Funds and later on transfer to normal Equity Mutual Fund when the market is down. Click Here for Switching from Arbitrage Fund to Normal Equity Fund with suggested funds of same company for easy switch. If you want to keep the money in Corporate FDs with higher Interest Rate than Bak FD rate, Click Here. (On Clicking, if already registered in rankmf.com, request for login and after login, the landing page to take straight to the basket of Arbitrage Fund, Switch and Link for Corporate FDs respectively).
When there is good investment opportunity available due to share market being very down, it is advisable to invest in Equity Mutual Funds by switching the money invested in ARBITRAGE FUND and/or along with any excess money available with you and then wait for one year to make it long term (as per current law). It is advisable to make it a practice to invest (whatever money available that particular time) when market is down for a consecutive longer period. Similarly, redeem/sale/withdraw money from Equity Funds which are invested in the last one year or more on FIFO (First-in, First-out) method. This will serve two purpose, one you will be encashing the profit and reducing the market risk and will be saving tax on Long Term Capital Gain (LTCG) of Rs.1,25,000/- every year. Secondly, your base investment amount will be increased to the extent of the earnings when you invest the proceeds from the sale. Click Here To access the basket of Best 10 selected Equity Funds with CAGR of Minimum 15% to 18% from each category of (a) new funds but doing good, (b) 5 years completed fund, (c) 10 years completed funds, (d) 15 years completed funds, (e) 20 years completed funds, (f) 25 years completed funds and (g) 30 years completed funds and (h) more than 30 years completed funds so that you can directly pick and choose any one from the basket without any hassle of doing market research. If you are not in a position to track market, then Click Here to take the help of tailer made SMART Switch from our partner entity which will do it for you automatically as per the market UPs and DOWNs.
Set medium term to long term goals like Family Foreign Visit, Kids Studying Abroad, Marriage, Buying Vehicles, Buying House and finally for creating a Corpus for Retirement and plan to build a corpus for each such plan by creating one TIP (Target Investment Plan) or Smart SIP Plus, Smart SIP or SIP Plus cycle for long term (Minimum 5 years or more) or up to your retirement. Keep it in mind that money can be withdrawn from the attached fund of these cycles at any point of time in case of emergency or any on-towards situations though the purpose for which the cycle was created may not be achieved. Use the following Calculator to calculate monthly amount to be contributed for a certain period of time to achieve the required amount. Take the help of following corpus calculator to plan your medium to long term goals. You can also use our other different Interactive Comprehensive and Additional Specialized Financial Planning Tools from our menu for better understanding, planning and downloading a report for further necessary action and consultation as required at a nominal token amount.