Sigma Wealth

Who Needs Financial Planning

Financial planning is indispensable in our lives. In fact, everybody in the society needs some form of financial planning, examples:

• save for your wedding expenses.

• medical fees and the cost of the new born.

• children's education expenses.

• some tax advice for your businesses.

• tax advice for filing of your own income tax – it's called the Self Assessment System (SAS).

• money for retirement

• insurance protection against major illness

• a will to take care of your love ones

• down payment for your house, dream car, holidays, and the list goes on....

What is Financial Planning?

Financial planning is the process of meeting your life goals through the proper management of your finances.It is an interactive and ongoing process shaped around your financial life cycle needs, for example buying a home, saving for your child's education, supporting your ageing parents and preparing for your retirement.Financial Planning can be divided into 3 areas:

• Personal Risk Protection

The failure to protect the family in the event of the main earner's death is one of the most common occurrences in modern financial planning. This could apply to the corporate world as well, where businesses are lost when a key director or partner dies.
Knowing that your family is protected in the event of your ultimate death can provide enormous peace of mind.

• Asset Accumulation

Once living expenses and insurance costs have been met, it's important to build a basic fund - "nest egg" for your financial goals. Asset Accumulation helps to provide for your future cash needs or prepare for your retirement by means of building your wealth through investments.

• Asset Distribution

Asset Distribution assures that your estate is distributed efficiently and tax effective way after your death. The main aim is to try to avoid the likelihood of your love ones suffering financially. It also helps to minimise the risk of family squabbles about who gets what.
Hence, there are certain decisions in your life that you have to make in advance of your death. Such decisions could involve the maintenance, disposal and use of your estate, cash, investments, business possessions and life insurance.
A comprehensive financial plan includes Cash Flow Planning, Personal Risk Management, Investment Management, Retirement Planning, Tax and Estate Planning. A change or more in any of these areas may affect you in achieving your financial goals.