# Here’s How To Secure Your Financial Future With Ease Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-15 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Financial Planning: Secure Your Family's Future with Meta Description: Discover the importance of financial planning for fulfilling your family's dreams and aspirations. Secure your future with the best investment options like URL: https://financedigest.com/heres-how-to-secure-your-financial-future-with-easehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/1-1-1736838174045-compressed.jpg) We live in complex times where satisfying the needs of your family can be a difficult task. Your teenage daughter wants a new shiny iPhone, while your oldest child may want to study abroad. If you want to fulfil all their dreams and aspirations, you need to start planning your finances at an early stage. It will not only help you understand the needs of your family members but also enable you to give them what they want. But for that to happen, you need to [understand the basics of financial](https://www.financedigest.com/10-ways-to-make-your-financial-model-easier-to-understand.html "10 Ways to Make Your Financial Model Easier to Understand") planning. [Financial planning is an important step](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") in meeting your life’s goals. A [financial plan acts as a guide](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions") that helps you get by life comfortably. With the help of financial planning, you will be able to gain better control over your expenses, income, and investments, such as [best ULIP plans](https://www.maxlifeinsurance.com/ulip-plans), term insurance, etc., to manage your money more efficiently. Simply put, it is better to invest your savings in an [investment instrument if you want to get some serious returns](https://www.financedigest.com/ils-investment-returns-continue-to-outperform-according-to-aon-insurance-linked-securities-report.html "ILS investment returns continue to outperform, according to Aon insurance-linked securities report"). For example, your [money invested](https://www.financedigest.com/ethical-property-investment-can-your-money-do-more.html "Ethical property investment: Can your money do more? ") in a ULIP plan will yield you much better rewards than parking it in a savings account. When you identify your family’s needs and the timeline by which you want to achieve them, [financial planning](https://www.financedigest.com/cfos-need-a-focus-on-forex-in-financial-planning-tools-accountagility-reveals.html "CFOs need a focus on forex in financial planning tools, Accountagility reveals") will be the key to reaching those milestones and giving your loved ones what they want, when they want it. Having said that, let us discuss the importance of [financial planning and how you can secure](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") your future with it. **Importance of** [Financial Planning](https://www.financedigest.com/why-financial-planning-should-be-a-key-subject-at-school.html "Why financial planning should be a key subject at school") As an investor, you may feel confused about the instruments that should be added to your [financial plan](https://www.financedigest.com/best-guide-to-build-a-personal-financial-plan.html "Best Guide to Build a Personal Financial Plan"). It can be hard to choose between the best ULIP plan and a mutual fund. But don’t worry, here are some useful financial instruments that you can consider adding to your [investment portfolio based on your budget](https://www.financedigest.com/uk-budget-fashion-chain-primark-to-invest-140-million-stg-in-stores.html "UK budget fashion chain Primark to invest 140 million stg in stores") and needs: - **Mutual Funds** These market-linked instruments are an excellent choice for new investors. Just like the best ULIP plan, you can either choose [equity funds](https://www.financedigest.com/global-equity-funds-see-biggest-weekly-outflow-in-five-weeks.html "Global equity funds see biggest weekly outflow in five weeks") or debt funds, as per your risk appetite. [Investors who are able to take higher risks should go for equity funds](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone"), and risk-averse investors should stick to debt funds. You can invest your money in stocks, [market funds](https://www.financedigest.com/market-turmoil-a-boon-for-trend-following-hedge-funds.html "Market turmoil a boon for trend-following hedge funds"), etc. Be sure to hire a reliable fund manager who can guide you through the best investment options for optimal returns. - **Public Provident Fund (PPF)** A PPF account is a good investment to [manage personal finances](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances"). It is also an excellent choice for investors who are [investing for the purpose of tax saving](https://www.financedigest.com/investing-in-a-first-party-data-strategy-can-save-the-day-for-retailers.html "Investing in a first-party data strategy can save the day for retailers"). This government-backed scheme [offers you risk-free returns](https://www.financedigest.com/bellways-kent-wharf-offers-excellent-returns-for-city-bonuses.html "Bellway’s Kent Wharf Offers Excellent Returns For City Bonuses"). While the maturity period for PPF is 15 years, you are allowed to make partial withdrawals after completing six years. You can also claim deductions for the amount invested u/s 80C of the Income Tax Act. Additionally, the investors can also enjoy tax exemption on maturity benefit and interest earned on the principal amount. - **National [Pension Scheme](https://www.financedigest.com/how-britains-pension-scheme-hedge-became-a-trillion-pound-gamble.html "How Britain’s pension scheme hedge became a trillion pound gamble") (NPS)** No financial [planning is complete unless you make provisions for your retirement](https://www.financedigest.com/5-annuity-tips-to-know-for-2023-retirement-planning.html "5 Annuity Tips to Know for 2023 Retirement Planning") years. NPS is a government-backed investment scheme that lets you invest in market-linked instruments, such as equities and [debt funds](https://www.financedigest.com/navigating-the-post-brexit-debt-landscape-opportunities-for-corporate-funding.html "Navigating the post-Brexit debt landscape: opportunities for corporate funding"). After staying [invested for a minimum of three years](https://www.financedigest.com/liverpools-new-chinatown-perfectly-positioned-for-property-investment-this-chinese-new-year.html "Liverpool’s New Chinatown perfectly positioned for property investment this Chinese New Year"), you are allowed to make partial withdrawals of up to 25%. You can also avail of tax benefits u/s 80CCD(1B) of the Income Tax Act. - **Unit Linked Insurance Plans (ULIPs)** The best ULIP plans are a must-have in any financial plan. But [what is ULIP](https://www.maxlifeinsurance.com/blog/investments/what-is-ulip)? It is an [investment and insurance product that gives you the best of both worlds](https://www.financedigest.com/breaking-the-stigma-men-and-mental-health-in-the-world-of-investments.html "Breaking the Stigma: Men and Mental Health in the World of Investments"). A ULIP plan divides your premium into two parts – one part is used to fund your life cover, and the other part is invested in funds of your choice. You can choose the asset allocation of funds as per your [risk appetite](https://www.financedigest.com/u-s-dollar-climbs-to-two-year-peak-as-risk-appetite-tumbles-yuan-drops.html "U.S. dollar climbs to two-year peak as risk appetite tumbles; yuan drops"). The best ULIP plansoffer returns when you stay invested for a minimum of 5 years. **Benefits of ULIP plan** If you are [thinking about why you must](https://www.financedigest.com/new-uk-pm-must-be-radical-to-stop-power-bill-catastrophe-think-tank.html "New UK PM must be radical to stop power bill catastrophe – think tank") add a ULIP to your financial portfolio, here are some reasons: - **Fulfils Your Long Term Goals** The best ULIP plans can help you reach your long-term financial goals, such as buying a house, paying for your child’s marriage, higher education, etc. - **Switching** ULIPs allow you to switch between [debt and equity funds during the policy tenure as per the market sentiment](https://www.financedigest.com/european-junk-debt-sales-spring-back-to-life-as-sentiment-improves.html "European junk debt sales spring back to life as sentiment improves"). - **Tax Benefits** You can avail of tax deductions up to Rs. 1.5Lakhsunder section 80C. At the same time, you can also enjoy tax-free maturity benefits u/s 10(10D). - **Dual Benefit Of Insurance And Investment** The best ULIP plans give you an [insurance cover](https://www.financedigest.com/app-based-insurance-cover-for-millennials-possessions-and-experiences-back-me-up-powered-by-ageas.html "APP-BASED INSURANCE COVER FOR MILLENNIALS’ POSSESSIONS AND EXPERIENCES: ‘BACK ME UP’, POWERED BY AGEAS") along with the investment benefit. You can not only protect your [family’s financial future with life insurance](https://www.financedigest.com/types-of-insurance-for-yourself-and-your-family.html "Types Of Insurance For Yourself And Your Family") but also grow your wealth by investing in a range of funds. - **EEE Benefit** [ULIPs](https://www.policyholder.gov.in/Unit_Linked_Products.aspx) fall in an exempt-exempt-exempt category, which means that the investor enjoys tax exemption at all three stages – investment, earning, and maturity. Experts like Max [Life Insurance](https://www.financedigest.com/types-of-life-insurance.html "Types of Life Insurance") recommend adding the best ULIP plans to your financial portfolio for its dual benefit. However, carefully review insurance providers’ websites to understand the policy benefits before investing. **This is a Sponsored Feature** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---