Madhav and Shreya are Thirty Eight and Thirty-Five years old respectively. They are happy and the working couple who have raised two smart and loving children Rahul and Riya This family enjoys a decent standard of living and little to no planning for the future. As financial planners, we can make a huge difference. Convincing a young couple that they need planning for their financial goal is another matter entirely! However, this couple approached us knowing that they needed to have sort of planning.

At the outset of our conversation, we focused on what were the goals and asked them to pen down the list to just three or four priority goals initially. So that the process of getting started seems less difficult to make it simpler, we first asked how long you would want to work and when do you wish to retire as we believe retirement is the crucial part of one’s life.

They mentioned that they wanted to retire in their early
fifty’s. By the time they approached us they had already
lost an opportunity to create wealth during the first half of
their professional life-saving nothing and we also made them realize that they are only left with few more years where they can accumulate sufficient amount of funds to meet their other important goals. So, the goals were to fund for Rahul and Riya’s higher education, Rahul and Riya’s marriage expenses, having an annual vacation, buying a car and not but the least planning their retirement.

Some goals could be prioritized depending on the need. For instance, retirement, Rahul Education, Riya’s education, Rahul marriage, Riya’s marriage for the family, followed by funding for education, marriage expenses, retirement planning and so on.

After taking into consideration the cash flows, we recommended starting monthly investment towards all their
goals as good amount of salary is drawn by the couple every
month.

Madhav and Shreya realized the necessity and were keen to proceed with the recommendations

Investment products need to be mapped to goals depending on time horizon and liquidity requirements.