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Financial Planning Tools

different tools for financial planning

So, you already know how daunting making financial decisions is regardless of whether you’re managing your personal finance or business funds. Truth be told, a decent plan can help you overcome obstacles. So, that’s where the role of a financial planning tool comes into being. 

Notably, anyone, from financial advisors to individuals and enterprises, can use the software to improve their money management decisions. Additionally, it also helps you with retirement planning and personal finance. Wondering what are financial planning calculators and tools? You are in the right post. So, let’s find out the benefits of a financial planning tool for individuals, professionals, and companies.

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An introduction to financial planning tools – Benefits and more

In a country like India, making money management decisions is quite a hectic job. But with financial planning tools and resources, you can better organise your finances and set goals. In addition, you can also make well-informed decisions considering your investment and savings.

Moreover, these tools can help you with budgeting and retirement planning. Furthermore, they help individuals to take control of their financial futures. So, let’s find out the top benefits of financial planning software from the following points:

Helps you understand the current financial circumstances

Accessing a financial planning tool helps individuals get an insight into their financial conditions. So you can better understand what your income and expenses are. You can also learn about the available assets and liabilities. 

Usually, such a tool helps you consolidate financial data under one umbrella. So, it offers an inclusive detail on your or your company’s financial health. Once you understand your financial condition, you can make your financial decisions wisely.

Tax planning 

No wonder that a financial planning software solution assists you in tax planning. Evidently, it offers users the insights to optimise tax liabilities. Additionally, such a tool comes with features like tax calculators and investment analysis to help you identify tax-saving scopes considering the tax laws in India. 

So, your job is to analyse income, exemptions, and deductions to make a well-informed decision. Thus, using such software helps you minimise tax burdens while improving your investments and savings. 

Better manage risks 

Effective financial planning assists individuals and companies in determining potential monetary risks. So, using one such tool helps you get a better idea of market volatility and inflation.

Note that personal financial planning tools help you evaluate risks associated with future bills. Once you start assessing those unfavourable consequences, you can better take actionable steps accordingly.

Monitors and sets the right financial objectives

Once you start using a money-managing software solution, you can better set and monitor your/your company’s financial goals. Such a tool helps you create your goals by setting deadlines. Additionally, you can also monitor your progress for different financial goals for your personal or business needs. 

Basically, monitoring the progress toward achieving financial objectives speeds up with the help of the tool. Plus, you can also attain long-term financial success, too.

Also read: Passive income ideas for financial freedom 

Types of financial planning tools available in India

So, as you have understood the concept of financial planning, it’s time to understand the types of financial planning tools available in India:

Wealth-creation financial planning software

Simply put, a wealth creation financial tool aims to build wealth over a long time span. The following are the types of wealth creation tools available as of now:

  • Mutual Funds 
  • Direct Equity wealth compounder
  • Mutual Funds SIP 
  • Direct Equity SIP 
  • Retirement (like NPS and more)

Protection tools 

So, let’s talk about the protection tools. Note that you must protect your plan against risks and contingencies. You may have a strong portfolio. However, in an unfortunate demise, without an evident backup plan, you won’t be able to manage risks. The risk gets managed via protection tools. 

Notably, protection tools aim to support you and your family. Risks to financial plans come from different circumstances such as ACT of God devastations, unforeseen death, disability and more. In such circumstances, the protection tool offers a lump sum to you and your family. The following are the types of protection tools available today:

  • Life cover tools
  • Pension plan calculator
  • Health insurance calculator
  • Property insurance calculator and more

Drawdown calculator 

Let’s consider a scenario where you retire with a corpus. Ideally, you must structure it in such a way that involves withdrawing one portion of both the returns and principal over a twenty-five-year period. So, this particular strategy is implemented using a drawdown calculator. Also termed the SWP, this calculator is an analytical tool that estimates the optimal drawdown methodology. 

A drawdown calculator can simply include the monthly amount and expected yield. Besides, you also need to define the corpus for the tool to calculate the overall duration.

Perpetuation calculator

So, the permutation calculator tool ensures a smooth transition of your wealth to family members. Thus, this type of tool helps you plan a legacy or make wills.

Also read: How to master financial freedom formulas and become an intelligent investor


Thus, to successfully manage income, spending, assets, taxes, and financial goals, you can consider a financial planning calculator. Meanwhile, making a good financial plan becomes speedier with such a tool. Luckily, you can get various financial planning calculators in the market. So, simplify your process of selecting the financial planning tool by choosing one that comes with customisable features as per your goals. 

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