Financial Planning in Corona Times

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Why is financial Planning very important?

Corona Global market shutdown has been as an eye-opener for the whole world. Most of the world population has resorted to their savings now. Financial planning has been an important part to sail through such tough times.

Why is financial planning important:-

1.       Absence of any kind of social security for vast majority of people
        Other than some developed nations, majority of the nations do not have a social security system to support their citizens.

2.       Increased longevity due to improved medical care AND ever increasing medical costs
       Cost of medical care has increased exponentially and people have to resort to sell their property and other assets to get proper medical care.

3.       Rapidly decreasing career span; retirement (voluntary or otherwise) age is falling
        New business models and business environment has led to decreasing career spans

4.       Gradually (dramatically?) reducing joint / extended family system
        When people were living in joint family, household expenses were shared and hence there was not much financial pressure on individuals.

5.       More market driven and globalized Indian economy; more choices and more risks


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