Now that we know how important it is to have a good credit score when you apply for a loan ( read previous post “ Your credit score- meaning and importance), let us see what we can do to maintain a good credit history-
Back in the 1960s, 1970s and even the 1980s, people lived a credit free life. There were no credit cards, no vehicle loans (not many owned cars anyway!) and no home loans – the business class and the richer sections of the society were the ones who could afford to build their own houses early in life. Many of the middle class and upper middle class people stayed in company provided/rental accommodations during their working years and used the PF/gratuity/terminal benefits to buy a house of their own on retirement.
The previous post was about making a will, which is the most basic form of estate planning. But in certain cases, a will has its own limitations and it not sufficient to efficiently distribute one’s estate. This is where a trust comes into the picture.
Till a few years back, people used to feel uncomfortable discussing inheritance and estate planning issues and hence tasks like preparing a will etc. were postponed for the future till the time it became inevitable to do so. Not anymore. Clients are now aware of the fact that postponing the inevitable only makes the job difficult; and the difficulties the family would have to face in absence of a will if the breadwinner were to die all of a sudden. As a result, today most of the certified financial planners have included estate planning in their scope of practice.
When we talk of financial planning, it is mainly about goal setting, saving and planning for the future. But, sometimes reaching certain key milestones in our life like marriage may require a complete re-working of our finances- planning for our immediate goals. Let us take Aryan’s case to understand this better.