Uttam Kumar Sen has been experiencing the experiences around the consequences about personal finance from Peoples’ University since last 31+ years and wants to share them with you.
He started his journey as a life insurance agent in 1986 and that too by chance and not by choice. Although it’s a noble profession, he didn’t enjoy the profession by reason of Sales Target/Premium Target.
While he witnessed settlement of death claims, he realized the consequences of under insurance. But during those times there was no concept about pure insurance. Awareness level was too low and he had been trying to “sell” insurance as insurance, neither as savings nor as investment. It was really an arduous job.
He qualified as CERTIFIED FINANCIAL PLANNERCM in 2011. CERTIFIED FINANCIAL PLANNERCM or CFPCM is an international certification program in the field of Financial Planning, wealth management and financial advisory services in 2011. It’s recognized in over 26 countries across the world.
Being one of the founder Directors of Step Ahead Investment Advisors Pvt. Ltd (SEBI RIA), he ensures to provide solution for any problems or queries with your existing insurance, investments, debt management etc. They conduct Financial Literacy Awareness Campaigns for the members of Housing Societies, Associations, Clubs, Companies and Educational Institutions which help them analyze the rewards and risks associated in order to make informed choices, understand the need and importance of financial planning.
Prior to Step Ahead Investment Advisors, he was the proprietor of Money Map. He took exemption from Life Insurance Corporation of India in 2010 while he was Chairman Club Member Agent, solely to work in a fiduciary capacity. He follows need-based approach while dealing with clients.
He had been a visiting Faculty of CFPCM & CWM (Level 1) at ICICIdirect for Financial Learning (ICFL) since September 2013 to August 2016.
Objectives of the Blog:
Sen’s ultimate goal is to learn and share the learning so that others can apprehend. The blogs are written for financial literacy awareness among people.
The Concern of Financial Literacy
You can take informed decision based on your aspirations/goals.
- You need financial plan first before you take steps, i.e. investment, insurance or take loan etc. You may have many options/choices. You may be ill-advised due to complexity. Lots of credit card options, several types of mortgages, different types of pension products, insurance, mutual funds and the ever-growing number of investment options further complicate financial decision making. All financial products are good but all financial products are not suitable for you. So you need Financial Plan first.
- Bank accountholders regularly get calls from Relationship Managers, who convince to give the best investment plan, the best home loan, the best credit, and so on. They sell insurance (ULIP), mutual funds without much knowing about the accountholder’s requirements. Thus many end up buying these products, which are not at all suitable for the accountholder/buyer.
- While a person earns generally his income increases but he may ignore that his future income may not follow the history and he needs passive income during retirement (replacement of active income & restructure of asset allocation). Many people today are feeling a high level of financial uncertainty and are looking for answers of their unanswered questions like falling of interest rates, income tax & inflation. Sadly, there are no easy answers at the eleventh hour. However, there are several solutions through Financial Plan and you may get relief from your financial anxiety.
- With the changing macroeconomic factors many companies have withdrawn defined benefit pension plans/traditional pension plans. Nevertheless, lot of money is flowing into debt funds & traditional guaranteed tools like bank fixed deposits, bank recurring deposits, post office small savings schemes & PPF. Where one can get hardly get appreciated value (increase in the value of an asset over time in terms of requirement).
- There is no social security, such as in case of premature death, illness, disability, maternity and old age.
- We are living longer. So we must accumulate adequate funds before retirement to cover post retirement expenses over a longer time. Otherwise, we would be financially dependents to our family.
- Due to rapid economic changes, we can see the market cycles – peak, recession, trough & recovery. The business cycle is the natural rise and fall of economic growth that occurs over time. The cycle is a useful tool for analyzing the economy. It can also help you make better financial decisions. Due to the increased number of finance-related noises with conflicting views in the electronic media, newspaper & journal etc make you confused and your financial path becomes difficult.
What to do?
- Try to find out a financial a Financial Advisor who is knowledgeable, whom you can trust, and with whom you can work comfortably. They’ll work for you in fiduciary capacity.
- Make a Financial Plan. Put your achievable aspirations/goals on priority basis.
- Follow the Financial Plan with periodical reviews.
- Check your insurance, investments periodically.
Neither it’s too early or too late to improve your financial literacy. In fact, if you avoid major mistakes in your personal finance and religiously do some of the most basic things, you may find yourself on the road to controlling your financial future with significantly less financial anxiety. Thus you get financial freedom.
The articles written are very unique in nature. Mr. Uttam Kumar Sen hopes the blog provides some of the information you may need & may change your thought process.