Financial Planning

What is Financial Planning?

Financial Planning involves asking yourself, the right questions, determining where you stand with your money, visualizing where you want to be in the future, setting key financial goals, and creating an action plan to achieve those goals.

Whether it's buying a house, saving for your kid's education, or preparing for retirement, a financial plan makes it easy and actionable. It helps you optimize your income and savings to grow wealth and build a future you want to live in. 

Why do you need a financial plan?

Having a financial plan is crucial because it acts like a guide for your financial journey,  just like planning a trip using Google Maps. Here are 7 reasons why financial planning is important.

1. To have Clear & Written Financial Goals

I usually begin my financial awareness seminars like this "I can make this statement in this room or in any room for that matter - Around 75% of people here will not have clear and written financial goals".

I know it is a bold statement to make, but I have never had people disputing it, so I am assuming it is true. 

Just like deciding where you want to go on a trip, a financial plan helps you figure out your big-money goals. Whether it's buying a house, saving for your kids' college, or getting ready for retirement, it's like setting your destination in the map.

2. Better Money Management (Choosing the Best Route):

If you drive in Dubai, I am sure you know the importance of taking the right exit. If you miss one, you are likely to miss another one, ending up being late, driving longer than you planned for, or ending up on the opposite side of the town. 

A financial plan is like picking the best route on Google Maps. It helps you organize how you earn, spend, save, and invest your money, making sure you're on the right lane and taking the right exits. 

3. Financial Security (Planning for Roadblocks):

Life can have unexpected roadblocks, like major health issues, family emergencies, or losing a job. Your financial plan is like having a detour ready, so you're prepared for these surprises. It's about being prepared for these unexpected events.

A robust financial plan includes emergency funds, insurance, and flexible investment strategies that act as a financial cushion. This preparation ensures that when life takes an unexpected turn, you're not caught off guard. Instead, you have the resources and a plan to navigate through these challenges without derailing your long-term financial stability and goals.

In essence, it's about ensuring that life's surprises don't become financial setbacks.

4. Future Readiness (Adjusting to New Directions):

As you go through stages of life, your goals and objectives change– you may want to start a family, immigrate to another country, or start a business.  Each of these significant life stages brings its financial implications and needs. Your financial plan helps you realign your finances, just like you reroute on Google Maps.

5. Investment Strategy (Balancing Risk and Speed):

Investing your savings help you grow wealth and achieve your goals faster, But it involves risks and volatility.   Your financial plan helps pick the right investment starategy that aligns with your risk appetite, return expectation, investment horizon and many other important factors. 

6. Reduced Stress (Knowing Your Way):

A Financial Plan like having a GPS for your finances, provides you with a clear direction and steps to follow. With a financial plan, you're less likely to feel 'lost' when it comes to making big financial decisions or dealing with unexpected expenses. It gives you a framework for handling your money, so you're not just guessing or hoping for the best. Instead, you have a well-thought-out strategy that guides your financial choices and helps you stay on track toward your goals.

7. Wealth Building (Enjoying the Journey):

Finally, a good financial plan isn't just about reaching your destination – it's about enjoying the ride. Over time, it helps you grow your wealth, making your financial journey rewarding.

A financial plan isn't just about tracking your money – it's about making sure your money takes you where you want to go in life, just like a reliable map for your journey.

Key Elements of a Financial Plan

An efficient financial plan typically has the following 6 key elements that can help you make the best of your tax-free income in the UAE and achieve your goals with ease;

1. Financial Goal Setting - 

   Setting practical, yet ambitious Financial goals that align with your life goals and values. 
   
   

2. Budgeting & Cashflow projection & management

   Creating and maintaining a budget with an intention to create an investable surplus, that can be used to create wealth. Projecting and planning for future cashflow needs, especially taking into consideration the potential changes in your income, in the event of change in your residency or nationality. 
   
   

3. Insurance Planning

   Assessing your protection needs and finding suitable life insurance solutions with riders to enhance the scope of the coverage at an affordable cost.
   
   

4. Investment Planning for Crucial Life Goals

   Determining how much you have to and where you can invest to achieve your goals. At what rate your investment have to grow and assess your risk appetite? Building the right asset allocation and investment management strategy. 
   
   

5. Retirement Planning

   Estimating your retirement income needs based on your lifestyle and preferences. Taking into account longevity and the impact of inflation. Creating a robust retirement portfolio that balances growth and risk. Creating passive income streams. 
   
   

6. Tax Planning 

   Implementing strategies to minimize tax liabilities and maximize tax benefits. Estimating your tax liabilities and providing for meeting them.
   
   

7. Legacy & Estate Planning

   Helping you make and document decisions about who will inherit your assets after your death. This includes creating wills, setting up trusts, and planning for estate taxes to ensure your assets are seamlessly distributed as you wish. 
   
   Estate planning in the UAE and Gulf countries requires careful consideration of The Sharia Law of Inheritance. It often involves consulting with legal professionals who specialize in local and expatriate estate planning to ensure that your assets are distributed as per your wishes and compliant with local laws.

As unique as your fingerprint

Everyone’s financial and life situation is unique, and so are our goals; aren’t they? 

This is exactly what I keep in mind when providing financial planning advice to my clients.

As a Financial Advisor, I am committed to learning about your goals, dreams, apprehensions, bottlenecks, ordeals, and past experiences. 

Together we will use them to build a Holistic Financial Plan focused on your distinct needs, with cash flow projections and asset allocations using modern and forward-looking tools and processes called the GAiM Plan.

A personal plan as unique as your fingerprint that aims to convert your goals into reality. With every number, every goal, every dream your very own.

What is the GAiM Plan

"Good intentions never work; you need good mechanisms to make anything happen."-Jeff Bezos

A mechanism, also known as a system, is a step-by-step process of bringing together knowledge and resources and enabling seamless action to achieve a desired outcome.

The GAiM Plan is one such system. 

It is an innovative, end-to-end financial planning and wealth accumulation strategy exclusively designed to help you grow wealth, protect income, and achieve your financial goals.

It comprises the following  processes;

• The GPS - Goal Positioning System
• Detailed Action Plan and Recommendations
• Continuous support and motivation to implement the recommendations of prudent investments and adequate insurance. 
• Feedback loop to help you measure progress and realign your strategy

Reports and Recommendations

Once your custom-made financial plan is in place, I will share the following reports, and recommendations;

1. Potential Wealth Table and Chart
2. Networth statement with a benchmark to compare the progress made
3. A Holistic Financial Plan capturing your dreams and goals
4. A detailed action plan to achieve your goals and aspirations 
5. A custom-made investment strategy and asset allocation for your retirement, child education, and other vital goals. 
6. A comprehensive life insurance calculator to help you determine how much coverage you should ideally have.

We will also create and follow a system to measure progress and make necessary changes in line with the changes in your life and markets. 

Click here to know more.

FAQ

1. How safe is my data with you?

We follow high standards of data protection and confidentiality. The information you provide is only used for providing the suitable financial advice and solutions. It will not be shared with third parties with out your written authorization. 

2. What is your Qualification and Experience?

I am a Financial Planner / Advisor with more than 12 years of experience in helping residents in the UAE grow wealth and protect income. A Commerce Graduate with a Level 3 Certificate in Insurance and Financial Planning from CII UK.

Click here to read what people are saying about me and my work and here to learn the benefits of hiring me as your financial planner. 

3. How much fees do you charge for the Financial Planning Service?

Everyone's situation and preferences are unique, the fees/charges depend on the level of engagement you seek. Let's connect on a complimentary discovery call to understand the level of engagement, the benefits I can provide and the fees/charges.

Click here to book a Discovery Call Now. 

4. How long will the process take?

This process is spread over 2 or 3 online meetings. In the first meeting complete the goal setting, after which I will email you the financial plan, and the potential solutions.

In the second meeting, we will explore the potential investment/insurance solutions and asset allocation. By this time you will have a clear idea of the benefits and charges, helping you decide if you would prefer implementing my recommendations.

If all goes well, we can meet again to clarify the finer aspects before you decide to implement the solutions.

What to know more?

Schedule a 15 minutes discovery call