What is financial planning?


Well, financial planning by definition is a long term process of wisely managing your finances so that you can achieve your dreams and goals.

That means, financial planning is NOT an overnight success. So if somebody approaches you telling you to invest in something and you will have a guaranteed 20%-40% earnings or even double your money within a week or a month, TAKBO KA NA. SCAM ‘YAN.

I will be showing you the importance of having a financial plan, so please read on.

Financial planning isn’t just about growing your money. It is also identifying the barriers that will hinder you from achieving your financial goals and finding the right solution to these problems. Loss of job, economic condition, disability, critical illness, or sometimes pre-mature death are part of life’s uncertainties that can bring failure to our goals. You wish your baby to study in a prestigious university someday but then something happened to you. Pa’no na ang dream mo para sa baby mo ngayon kung wala ka na? Once, a client consulted with me and told me to disregard his child’s education plan because they already have one for the kid but then when I checked the said education plan, enough lang pala itong pampamasahe ng anak niya in the future and hopefully nandoon pa din yo’ng company na yo’n by that time.

Financial planning is a total package of laying down your financial goals. What are the elements of a right financial plan? Please note the following:

  1. Protection planning.
    Do you know how much insurance coverage you need? What type of insurance is suited for you? Kung hindi, ‘wag ka munang kumuha. Madaming klase ng insurance ang available sa market ngayon. We have whole life, term, and VUL but that does not mean na you need to buy all those products. Alamin mo muna ano ang best para sa’yo. Consult with a reliable financial planner.
  2.  Tax Planning.
    Paano makakabawas sa mga bayarin sa mga taxes, lalo na kung ikaw ay may negosyo? Dalawang klase yan: tax evasion at tax avoidance. Tax evasion is illegal while tax avoidance is not. You really need to know more. Talk to us.
  3.  Education Planning.
    Kung plano mong pag-aralin sa Ateneo or La Salle ang anak mo, magkano kakailanganin mo in the future? Let’s say baby pa anak mo, so 18 years from now papasok na sya ng college. If your child is going to Ateneo, ang average tuition fee ngayon ay nasa P170,000. But wait, ngayon lang ‘yan. Magkano na kaya in the future? At kung malaman natin ‘yan, magkano ba dapat ang itinatabi monthly sa sahod mo para ngayon pa lang pinag-hahandaan mo na ang kayang educakasyon? There is much to learn indeed!
  4.  Investment Planning.
    If you are earning P100,000 every month or P20,000 a month, ilang pursyento nito ang dapat automatically nilalagay mo sa investment mo sa stock, mutual fund, UITF, or VUL? What are these? We can definitely help you.
  5.  Estate Planning.
    Once you followed your financial plan and you become very rich someday, sad to say pero kapag namatay ka lahat ng yamang ‘yan ay iiwan mo din lang. Pero dapat iwanan mo ng matiwasay, na hindi nag-aaway-away ang pamilya mong pinag-iwanan mo. There is a better way. We can teach you.

I know I haven’t discussed all the details but you will absolutely learn more if you keep on reading my blogs. It will be my pleasure to help you and mentor you in ways that I can. It is my mission to help you achieve your financial goals.