Financial Planning Home
Financial Planning Overview
Financial planning is the art of managing yours or someone else's money. It is more than finding and investing in a stock or mutual fund, and waiting for profits to come. In essence, it includes, but not limited to the following aspects;
- Making investments and obtaining acceptable returns;
- Managing the credit and debt effectively;
- Maintaining financial stability from unexpected financial obligations (loss of job, disability etc.);
- Minimizing income taxes;
- Preparing for retirement.
Therefore, comprehensive financial planning should include the following 6 aspects:
- Cash planning
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Investment planning
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Tax planning
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Insurance planning
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Retirement planning
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Estate planning
6 Steps to a successful Financial Planning
A successful financial planning process should include the following six distinct steps:
- Collect Financial Data
- Identify Financial Goals
- Identify Financial Constraints
- Develop Financial Plan
- Implement and Review Financial Plan
- Tax Planning - This will be covered thoroughly in Income Tax section
A good financial plan will include achievable goals, reasonable asset allocation, and diversified portfolio approach.
