Financial Planning PyramidWhat level are YOU on?
- Protection: This stage one has to make provision for unexpected events, such as Debt Reduction, Replacement of Income, Death, Hospitalisation, Disability, Critical Illness, creating Emergency Fund (6 months of salary), Loss of Income.
- Savings & Wealth Accumulation: This stage helps you to start building your wealth and investments. This is the baby steps in creating your passive income sources. Investment options one can consider are Public provident Funds, Debt Mutual Funds, Bonds, buying house, Fixed interest Plans like Fixed deposits, Fixed Maturity plans, Gold.
- Growth and Diversification: This stage helps your wealth and investments achieve maximum growth and income. This may be your long term passive income sources. Investment options one can consider are Equity Mutual Funds, Stocks, and Portfolio Management services.
- Speculation: At this stage, you should have excess funds with zero or low debt, enough retirement and investment fund before investing in a much higher risk portfolio. One can look into Real estate, Business, Art and Collectibles.
The pyramid illustrates which financial matters you should address first. As you move up the pyramid (by reducing debt and acquiring assets), your income protection needs are replaced by your need to accumulate more wealth. The opportunity for higher yields increases; however, risk also increases and liquidity reduces.
The financial pyramid enables us to understand the importance of each stage in order for us to visualize our road to financial freedom. It is also important to note that it is ideal to go one step at a time for each level in your financial plan to achieve success.
When it came to understanding Mutual funds, my first discussion was with Subhash Chavan of Moats Wealth Advisors. He guided me with the systematic plan and how Mutual funds work and the wealth growth over the years. With the experience and the background of Moats Wealth Advisors I found a better way to grow my wealth. What was giving more comfort was that the way they have been able to switch and find the best funds to invest in, their regular daily updates, quarterly updates and the reports gives me confidence. I can very well say I have been having the best experience in Mutual fund investment with Moats Thank you Subhash for the excellent guidance. I am recommending Moats Wealth Advisors for all Mutual fund investors.
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It has been some time that we have started referring you to our contact sphere for mutual fund investments.
With so many options available in the market, Mutual Funds can be sometimes overwhelming to select the right one.
This is where an expert advice is required and am glad could introduce you to them.
We have received positive feedback from whosoever have availed your expert advice.
You did not sell whatever you could but make them understand what they require for future.
That was the primary difference. Thank you so much for the correct advice and establishing great
credibility. Wish you luck always.