4 Things to Consider During Your Financial Planning for the New Fiscal Year

1. No Depreciating Assets in your Investment Plan

Thenext step is to fix how much amount can you invest on a monthly or lump sum basis to fund that goal of yours. Funding goals will depend upon the existing investments and assets that are available to meet future goals and the ability to save which will depend upon the current level of income and expenses of the household, and the liabilities of the individual which are the obligations that have to be met out of their available income.

2. Recover Your Contingency Fund as a part of your Investment Plan

It is recommended to maintain a contingency fund which is equal to 3 months of your income for hard times. It is good if you have your contingency fund planned and maintained. But considering the current situation, it is necessary to increase the same for all your needs. In case you have utilized some amount of money from your contingency fund in the lockdown, you should recover it on priority once things stabilize.

A contingency funds helps you in hard times when you have a limited or no income due to various reason. It helps you and your family with the day to day expenses. Also, your bank will provide interest on the amount accumulated for your contingency fund.

3. Keep Your Insurance Updated

Considering the prevailing effects of the pandemic, it is very important to have a health insurance and life insurance. Also, you must check with your insurance provider whether Covid-19 is covered in your policy or not. In any unforeseen case, health insurance and life insurance can help you and your family without digging a hole in your finances. Also, the sum insured in your health insurance should be sufficient enough for the modern medical expenses.

Insurance is a very important key factor for financial planning. The premium you pay initially not only provides you with tax benefits, but also safeguards the future of you and your loved ones.

4. Reallocate Your Portfolio

The financial markets across the globe have been very volatile during all these times, and there are strong chances that your investment portfolio must have experienced its after-effects. Therefore, it is very important to reallocate your investments in equities, commodities, mutual funds and others to achieve optimum balance. Reallocation of investments may help you in minimizing your risk.

Also you should diversify your investment portfolio. A diverse portfolio is very important for effective financial planning. It has just the right amount of various type of investment including mutual funds, equity markets, gold bonds etc.

5. Get Financial Assistance

In case you are not sure about your financial investments, it is recommended to get help from a registered investment advisor. There have been various schemes from the government like the moratorium on EMIs for 3 months which can be beneficial for you. A financial advisor can not only help you in planning your investments as per the current market conditions, but can also keep you updated about the various policies which have been introduced to help the citizens cope up with the situation.

While it is not evident, that when the world will resume its pre-pandemic pace, above mentioned strategies will surely help you in maintaining your financial health for the new financial year. But as the old saying goes - “Health is Wealth”, it is more important to physically stay safe from the threat by following social distancing, staying home and observing basic hygiene.

If you are still confused you can opt for the services of a certified investment advisor, which can help you with your financial planning. Investment advisors analyse all parameters like your income, expenses, assets etc. and calculate a risk profile based on this information. The risk profile helps you understand the amount of risk that you can take in the financial markets before planning any investment.