FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE
Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

What is Financial Planning?

Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child’s higher education or planning for retirement. The Financial Planning Process consists of six steps that help you take a ‘big picture’ look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

The Benefits of Financial Planning

Financial Planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of the whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Recommended Mcom Notes

M. Com. (Part-I)

M. Com. (Part-II)

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Retirement planning, in a financial context, refers to the allocation of savings or revenue for retirement. The goal of retirement planning is to achieve financial independence.

The process of retirement planning aims to:

  • Assess readiness-to-retire given a desired retirement age and lifestyle, i.e., whether one has enough money to retire
  • Identify actions to improve readiness-to-retire
  • Acquire financial planning knowledge
  • Encourage saving practices

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Obtaining a financial plan

Producers such as a financial planner or financial adviser can help clients develop retirement plans, where compensation is either fee-based or commissioned contingent on product sale. Such an arrangement is sometimes viewed as in conflict with a consumer’s interest, and that the advice rendered cannot be without bias, or at a cost that justifies its value. Consumers can now elect a do it yourself (DIY) approach. For example, retirement web-tools in the form of a calculator, mathematical model or decision support system are available online. A web-based tool that allows client to fully plan, without human intervention, might be considered a producer. Key motivations of the DIY trend are many of the same arguments for lean manufacturing, a constructive alteration of the relationship between producer and consumer.

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Credit is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead promises either to repay or return those resources (or other materials of equal value) at a later date. In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people.

The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.

Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services. However, in modern societies, credit is usually denominated by a unit of account.

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Delhi University Mcom Financial Planning detailed Syllabus is available here.

Contents:

Unit I: Introduction to Financial Planning: Globally accepted six steps financial planning process; General principles of cash flow planning, budgeting, legal aspects of financial planning. Overview of risk management: investments, insurance, retirement solutions, tax and estate planning.

Unit II: Investment Environment: Types of investment options available to an individual investor – bonds, equity shares, mutual funds, fixed deposits, PPF, financial derivatives, commodity derivatives, gold and bullion, ETFs, REITs, real estate etc. Objectives and rewards of investing. Investment constraints (tax considerations, unique needs etc.). Impact of inflation and indexation. Sources of financial information. Understanding mutual funds (Schemes, NAV calculation, load structure, Systematic Investment Plans, Systematic withdrawal plan etc.)

Unit III: Return-Risk Assessment: Risk aversion and risk profiling. Concept, types and calculation of returns. Assessment of risks in various financial instruments. Power of compounding and Time value of money. Rupee cost averaging. Concept of Portfolio and Diversification. Basics of Portfolio risk and return (two assets case). Tactical and strategic asset allocation.

Unit IV: Personal Financial Planning: Personal financial planning process. Setting personal financial goals. Life cycle approach to financial planning. Components of financial plan; developing financial plan; Using time value concept to estimate savings. Evaluation of tax saving instruments. Objectives of will and creating a valid will; living will and power of attorney. Planning for life insurance and health insurance. Primary clauses in Insurance agreement. Main contents of healthcare insurance.

Unit V: Credit Planning and Retirement Planning: Assessment of credit – types, advantages, disadvantages. Consumer and housing finance planning. EMI calculations – methods and implications. Reverse mortgage. Education loan. Credit card management; credit limits, overdraft protection, grace period. Credit Bureaus – individual credit history and ranking, identity theft and protection against identity thefts. Retirement planning and pension plans. Impact of taxes and inflation.

Unit VI: Investor Protection: Role of SEBI. Investor grievances and redressal system in India.

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

Use following books for M.COM

Recommended read:

Part A Firm and Market for Managerial Economics Mcom Delhi University
Unit I Demand and The Firm for Managerial Economics Mcom Delhi University

Unit V Credit Planning and Retirement Planning for Financial Planning MCOM sem 1 Delhi University

CAKART provides India’s top M.COM faculty video classes – online Classes – at very cost effective rates. Get M.COM Video classes from CAKART.in to do a great preparation for your exam.
 
Watch M.COM Economics sample video lectures Visit cakart.in
Watch M.COM Accounting Sample video lecture Visit cakart.in
Watch M.COM Mathematics Sample video lecture Visit cakart.in
 
For any questions chat with us by clicking on the chat button below or give a missed call at 9980100288

Leave a comment

Your email address will not be published. Required fields are marked *