Wednesday, December 7, 2011

Financial Planning

Many people think of Financial Planning as buying an insurance or an investment product. Well, the answer is yes and no. So what is Financial Planning all about?

Financial Planning does not just simply refer to buying an insurance or an investment product. A comprehensive financial planning entails the following:

(1) Defining your goals
(2) Understanding your cash flow and net worth
(3) Credit management
(4) Risk (protection/insurance) management
(5) Children's education planning
(6) Investment planning
(7) Retirement Planning
(8) Tax planning
(9) Estate planning

Many people think that Financial Planning is for the rich or that they are still young so they don't need for Financial Planning yet. The truth is that it is always wise to start your Financial Planning early in life. The earlier you start, the better it is for you due to the compounding effect.

1 comment:

Ivanturpin said...

Financial planning is a process by which an investor plans for his financial goals or aspirations in life, decides which investment class to choose for a particular goal and saves and invests his money for the same.

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