Don't just choose an option.Understand the decision.
Compare financial strategies, see what could happen under different scenarios and understand the trade-offs before deciding what to do.
Example decision
Retirement funding
Option A
Increase contribution
Monthly change
+₹10,000
Goal impact
Improved
Option B
Retain current funding
Option C
Change retirement assumptions
The right decision depends on goals, constraints, assumptions and the consequences of each alternative.
Compare
Look at relevant alternatives instead of evaluating one option in isolation.
Test
Understand how different assumptions and scenarios can change the outcome.
Decide
Move from analysis to a clear financial plan and practical actions.
The problem
Financial decisions are rarely about one number.
A change that improves one part of your financial life can affect another. Increasing investment, for example, can change liquidity. Increasing protection can change surplus. Changing a goal can change the required funding.
Goals
What outcome are you actually trying to achieve?
Cash flow
What can you actually afford without weakening the plan?
Risk
What risks and constraints need to be respected?
Trade-offs
What do you gain, give up or change with each alternative?
Scenarios
Don't only ask "what should I do?"
Ask what happens if you choose one path instead of another.
Baseline
Establish the current financial position and assumptions against which alternatives can be considered.
Change an assumption
Test a strategy or changed assumption and see how the resulting financial position could differ.
Compare outcomes
See the consequences and trade-offs before selecting a path.
Illustrative comparison
Retirement funding alternatives
| Consideration | Increase funding | Current funding | Change horizon |
|---|---|---|---|
| Monthly cash flow | Lower surplus | Higher surplus | Unchanged |
| Retirement funding | Higher | Current | Adjusted |
| Liquidity | Potentially lower | Higher | Depends |
| Goal outcome | Potentially improved | Baseline | Depends |
How it works
From problem to financial decision.
Planvesto's decision process connects the financial problem, possible strategies and scenario outcomes before arriving at a selected financial plan.
Understand the problem
Identify the financial issue, goal or constraint that requires a decision.
Consider applicable strategies
Identify strategies that are relevant to the specific situation.
Evaluate scenarios
Compare what the different strategies could mean under the relevant assumptions.
Compare the trade-offs
Consider goals, risk, liquidity, cash flow and other constraints together.
Select the financial plan
Move from alternatives to a selected financial decision.
Understand and act
See why the decision was selected and what actions follow from it.
Explain the decision
A decision should come with a reason.
Planvesto is designed so that a financial decision can be understood in terms of the evidence, assumptions, alternatives and scenario results behind it.
Why this decision?
Increase retirement funding
Goal requirement
The projected retirement position indicates a funding requirement.
Strategy comparison
Multiple relevant strategies were considered against the stated constraints.
Scenario outcome
The selected strategy produced the preferred overall financial outcome in the example.
Financial constraints
The decision also considers the effect on cash flow and liquidity.
Financial decision first
Decide what needs to happen before deciding what to buy.
A financial plan defines the strategy. Products are an implementation layer that comes after the financial decision.
Step 1
Financial problem
Step 2
Financial strategy
Step 3
Implementation
From decision to action
A financial decision should lead somewhere.
Once a decision is made, the next step is to translate it into practical actions and keep track of what changes.
Selected financial plan
What was decided?
Implementation actions
What needs to change?
Review
Has the financial position changed?
Reassess when needed
A new situation can create a new decision.
Start planning
Make financial decisions with the whole picture in view.
Understand the problem, compare the alternatives, evaluate the consequences and move forward with a clear plan.