ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financial planning includes budgeting your expenses, investing in right assets, setting SMART goals, selecting right asset allocation, creating a retirement plan and more. You would wonder why you need a financial plan when you have enough savings.

Detailed explanation-2: -A financial plan paints a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.

Detailed explanation-3: -What is retirement planning? Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently. This includes setting your retirement goals, estimating the amount of money you will need, and investing to grow your retirement savings.

Detailed explanation-4: -Everything in the plan should be coordinated-taxes, Social Security, income planning and investments. Your adviser needs to understand your entire financial picture, how the elements such as taxes and income generation interrelate, and how they can help you reach your retirement goals.

Detailed explanation-5: -Budgeting: A lot has already been said about budgets. Liquidity Management: The budget helps an investor fulfill their extremely short term goals. Insurance: Insurance is a very important and often neglected part of financial planning. More items