Wealth Planning for Defence Officers

Defence Personnel need a financial plan too!

We remember a day when we first met a Defense officer with idea of financial planning, He said “We have very little understanding about personnel finance; You are helping people to plan their financial life, which is very important for us.” We really felt good & thought to take it to next level.
Like every individual, they also need Financial Planning and also needs to take care of his finances. But before going further, let’s understand financial planning in simplified language.

 Financial Planning is the process of meeting your life goals through the proper management of your finance.” Finance doesn’t mean just investment it also includes your liabilities, your cash flow, your insurance etc.

Common Concerns of Defence Personnel

  • Frequent movement all over the country
  • Remote locations – difficult access
  • Not enough time
  • Frequent change of Bank staff
  • Irregular financial updates
  • Lack of constant advice
  • Safety and effectiveness of investment

Need for a plan

  • Protecting the family financially and planning for retirement  are the two main challenges for a military person
  • Military personnel have life insurance while they are in service, but the cover may be insufficient

From the outside, life in the armed forces looks privileged but when you consider the fact that signing up for the forces also means signing up to face a bullet or a bomb, or, on a less morbid note, be ready to live in remote locations away from family for prolonged periods, the privileges don’t seem abundant.

A few factors make financial planning important for India’s military families. First, many of these are single-income households. “The transferable nature of a soldier’s job makes it difficult for family to settle down.

Few important points that defense person should keep in mind:

  • You have very high chance of getting mis-sold financial products due to your transferable job & fleeting touch with the financial world. Investigate better before you put your hard earned money in wrong hand & go with some good financial planner who can be trustworthy.
  • For you it’s really important to have a proper written financial portfolio, by a Financial Planner.
  • All your investments and bank accounts should be in either or survivor basis – so even if you take some decision in far flung place it can be executed by other members.
  • Create an emergency corpus for at least four-six months’ salary in liquid instruments. “Keeping a higher emergency corpus is particularly important in covering the period immediately after retirement; it can also be used to meet unplanned or emergency family expenses when the person is on duty.”
  • Try to start early during serving life ,it helps to become financial independent at retirement life, better to start with systematic investment plan in mutual funds with long term views.
  • Last but not least, need to ensure that your “Will” is in order.

As a person from the armed forces, you have some qualities like discipline, managing skills, decision making power & investigation; that can do wonders if properly used in managing your money. With these qualities in your personal financial life – along with protecting freedom of our country, you will also be achieving financial freedom.

Please contact us for more details. We will be happy to serve you.