Loopholes in Financial Planning

POSTED BY Prateek Pandey ON September 4, 2013 5:06 pm COMMENTS (3)

Hi Manish

First of all I would like to thank you and all the contributors of the forum for such insightful articles and comments. Definitely the forum has changed my outlook towards personal finance. Earlier I was clueless about how the big financial goals in life can be achieved and even did not know the basic things like time value of money.Taking some action I have chalked out a sample draft plan for the future dividing into short term,middle term,long term and very long term goal.

I am enclosing an excel sheet link with this post.

 (I)First of all I would Like to have your opinion on whether I am missing some vital thing in this planning or am I doing some things wrong?

 (II)You could see that I am doing a major chunk of my planning depending upon the real estate as an investment option . What is your take on this? As I have read in one of your previous articles you differ from the opinion to take real estate as a priority investment tool.But if I follow that course of action the other options which deliver similar outputs seem a bit cumbersome and confusing to me.Adding to it I am unable to devote much time to nurture the investments


 (III)Next I have been a very conservative person when it come to investments. Basically I would say I fear direct equity. Perhaps this is because of my parents have always focused their money in debt instruments and my initial experience in stock market. I know that a disciplined SIP in mutual fund is way different from pure equity but still when I decide to go for it I loose my confidence because mutual funds dont work at times..I know that in a typical financial planning my equity part would amount to 70% as I have no responsibilities yet. How should I go for in this matter? I have read many articles on how should I go for selecting a mutual fund but still I am unable to make an informed choice.Please suggest me how to go ahead in this matter

 (IV)Last but not the least there is a catch in this entire planning. I am planning to go for a study leave for two years starting from July 2014 most probably,so if I buy a home or take mutual fund product in both cases it will be difficult for me to pay the EMI or SIP installment respectively. Thus I will have to defer the entire planning for two years which would impact my financial planning significantly. And as a rule of thumb its better as early as one starts.Is there any plan(SIP or other investment instrument) which promises for payment holiday and compensate for it later

 To sum it up I have been able to decide my goals,divide them into a time frame,assume future developments but the biggest task that I am facing is where to put that money in order to get the desired results.I know the instrument but I am unable to decide which option amongst that instrument. I have tried to seek professional help also but I was unable to get convinced as the person has seemed to be biased to a certain plan/scheme.Please guide me how to move ahead


Link for excel sheet:




3 replies on this article “Loopholes in Financial Planning”

  1. Dear Prateek, then do it at your own risk.



  2. Prateek Pandey says:

    I have no option Left….
    I will have to wait for my investments in real estate in that case.

  3. Dear Prateek, your MF may provide SIP holiday for 2Y but home loan from bank ‘ll not provide the same. How you are going to tackle this problem?



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