Best financial planning advice-keep it simple!

As the awareness about the importance of financial planning rises, so does the number of sources providing latest information, updates and advice on investment options & financial planning.While many of them are genuine, it is best to remember that the basic rules of financial planning are sometimes the only thing that an investor may need in this era of information overload.While complicated investment products may look alluring at first glance, they may end up not serving the purpose of their existence. So what should an investor do: it's pretty simple- keep it simple! Start with the basics: Insure your life to the optimal level (coverage should be atleast 10 times your annual income), have decent health insurance coverage, clear your debts & try to become debt free, live within your means, Build an emergency fund(should cover atleast four months of recurring monthly expenses), save and invest atleast 20 percent of monthly income, start goal based diversified investments & do estate planning. Thats about it.Trust in these financial planning basics. Remember- As in life, in the world of finance, simplicity & sticking to the basics actually works!

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