Dec 13, 2008 (LBO) – With recessionary fears looming the need to secure one’s financial future has become even more important, though recent double digit inflation is eating almost all the disposable income of most average Sri Lankan, says a top analyst. You will have to go about setting a plan to achieve that objective. The first item is to say how much you are going to set aside from your salary as savings and then you need to identify what are the kind of options that you have to invest, what are the kind of returns you will get, what are the inherent risks associated with those investments, the tax implications and the time horizon that you have. Then you have to articulate all this in a viable plan and you have to stick to that plan. That is the essence of financial planning.
LBRMoney: In a volatile market such as we see in Sri Lanka is it actually possible to do financial planning?
A: Yes you can. Where there is uncertainty the need to planning is more acute, because one problem in volatility is it affects our emotions. And when it starts affecting our emotions we don’t make rational decisions. If you have a clearly that thought-out plan that is articulated and written down, you can stick to that. So the need is high in this