A financial plan should be for the long term, but can it be for a lifetime? Well, yes, if your life is a monotonous journey with no twists and turns. But life is not that boring, or shall we say, that smooth.
There will be some obvious turns - job, marriage, children, retirement - in your life that will trigger changes in your financial plans. Then there may be speed bumps such as job loss that will require even more careful handling.
All these require detailed planning with foresight, which you may find difficult to handle on your own. You may need expert advice to work out a plan.
WHEN YOU GET MARRIED
Marriage means sharing goals and aspirations as well as assets and liabilities. So, finances, too, need to be planned out together.
The first thing to be done is updating documents-getting the marriage certificate, applying for change of name in PAN card, voter ID card, bank accounts, and changing the nominee in investments and insurance policies.
Marriage brings responsibilities. So, the insurance cover should be increased. A pre-requisite is to buy a pure-protection life plan. Also, change the individual medical cover into a family floater policy with higher sum insured.
ALL YOU NEED TO KNOW:About investing right
The risk-taking ability at this stage is slightly lower than when you are single and have just started your career. You also need some financial stability. "Keep 25 per cent investments in safe instruments such as bank fixed deposits for contingencies. Also, at least three months' expenses should be kept in a savings account or a liquid fund," says Sunil Mishra, CEO, Karvy Private Wealth.