How Does a Financial Plan Help You Achieve Your Lifetime Goals?

    Everyone or family likes to save some money and achieve their lifetime goals like building a home, giving higher education to a child, buying a new luxury car, retiring rich for a peaceful life, enjoying a vacation in an exotic location, buying property, etc. It all needs a perfect financial plan.

    Planning in advance

    You need to consider your available cash, monthly savings after household expenses, loan repayments, taxes, insurance, etc, before financial planning for your dream goals. A perfect investment plan reduces all of your stress in saving money for future needs. You also need to make provision for unexpected events like increased spending for hospital stays, losing a job, natural calamities, wars, strikes, etc.

    Financial experts at Joseph Stone Capital help you create a perfect financial plan to meet your financial needs and stay calm even in difficult times. They will track your monthly cash flow and suggest the best plan to pay back high-cost debt and invest surplus your money in various avenues like bonds, mutual funds, real estate, ETFs, etc.

    Higher returns for young

    The financial experts utilize their expertise in garnering high returns on your investments and show the right investment plan considering your investment period. If you are young, they will help you select a fund that provides higher returns over a 20 to 30-year period by investing in a blend of equities, bonds, fixed deposits, etc.

    Stable income for retirement

    Those looking for a stable income for their retirement and just have around 10 years of service left can invest in stable income funds. Such funds comprise fixed deposits, bonds, debentures, etc. You can invest small sums every month in best-performing funds as advised by Joseph Stone Capital to save surplus income.

    Investing in mutual funds

    You can earn higher returns by investing in mutual funds. You need to read the terms and conditions of a mutual fund before deciding to transfer funds or writing a check for your investment. A variety of mutual funds are offered by the companies to help people to save money. They take a fraction of the earnings for maintaining the fund.

    A variety of mutual funds such as specialty funds, funds of funds, balanced funds, index funds, debt funds, equity funds, money market funds, and income funds are available in the market to park your surplus funds and earn a higher income.

    The debt funds invest your money in fixed income assets, government bonds, and company debentures. They are safe and give you fixed returns on your investment. You need to pay income tax on these funds if the fund value exceeds a certain limit.

    Hybrid or balanced funds invest in a blend of assets such as bonds, equities, fixed deposits, etc. It involves a medium risk. The fund invests amounts in a certain ratio to reduce risk and maximize returns. On the other hand, equity funds invest in company shares or stocks. It involves high risk and may lose the significant size of your investment but gives you higher returns. It is suitable for investors, who can take risks.

    Open-ended funds

    Open-ended funds allow you to purchase units of a fund and sell them when you need money throughout the year. You can purchase some units of the fund at the current NAV (Net Asset Value) using your current savings. You can meet your expenses when you need funds by selling some of the units at the prevailing NAV on that date. It is one of the flexible options to ensure savings and liquidity. You can invest any amount in this fund. It is an actively managed fund. Therefore, you will be charged a higher fee compared to passive funds like closed funds.

    Significant gains in close-ended funds

    Unlike open-ended funds, you can not buy units of a close-ended fund at any time and date of the year. You can purchase some units of a closed fund during its offering. It has a maturity period. It means you can not sell them when you need funds. Therefore, you need to park only surplus funds in this fund for significant earnings for one to 5 years or more.

    You can also invest in interval funds at certain intervals. You can purchase the units from existing holders of the units. It is one of the best options to enter a fund using your surplus cash and earn a decent income.