A Summary of How a Comprehensive Financial Plan Contributes to my Financial Security No: A Summary of How a Comprehensive Financial Plan Contributes to my Financial Security In this fast paced world, one has to secure her/his future financially. To do that one has to have a plan. By financial planning it is meant that one must ensure that all financial needs are fulfilled smoothly in the short run as well as in the long run. Financial planning is the name of managing one’s assets in such a way that you get returns throughout one’s life.
Proper financial plan can save you from sudden financial windfall. Starting plan at an early age creates security because a penny saved today is more precious than saving tomorrow. To secure yourself financially you may need to start saving from your income and allocating a fixed amount for that along with the daily expenses (Ferguson, 2010). Financial planning is a process that requires setting of financial goals, analysis of current financial standing, evaluation of available planning opportunities and making up a strategy that fulfills your short term and long term plans. Financial planning incorporates Investment Planning, Retirement Planning and Estate Planning in a way that when one invests in financial market or forex market he gets return which can be used for future use even after retirement.
Retirement Planning is also financial that you identify the sources of income, expected expenses, savings and prospects of savings which is also a kind of financial planning because it manages assets with respect to expenses ensuring that you are never out of cash. Estate includes real estate, bank accounts, insurance etc.
and estate planning also provides you with some return (Retirement planning, 2011). May be this is too early to prepare for retirement plan, but yes, I do have my retirement plan. My plan is to invest in FOREX market. I will make annual required wealth plan and trade daily on the basis of this. Because intraday trading is safe and volatility of market means more profit. With little effort, I will be able to have more earnings per day thus achieving annual goal. I justify my plan by explaining the benefits of it.
First, I have the knowledge of FOREX market and how does it work. I will need ten to fifteen transactions daily to achieve my daily target and this can be done by just one click and assigning limits make it easier to cash your trade without loss. Second, it is not time consuming you just have to keep a check on past trend and intraday movement. For this, there are a lot of software programs and websites that show these trends. The most important aspect of financial planning is the person who wants it.
Three items that would make me more financially stable are investments in Mutual Funds, Savings Certificates, Shares and Bonds, and FX Market. Starting plan at an early age creates security because a penny saved today is more precious than saving tomorrow (Ferguson, 2010). To secure yourself financially you may need to start saving from your income and allocating a fixed amount for that along with the daily expenses (Ferguson, 2010). Investment planning is also important for financial security as you grow near to your retirement.
You may invest in real estates or make a diversified portfolio investment considering your required rate of return, risk tolerance and time period ("investment planning, " 2011). References Ferguson, G. (2010, June 23). The most important aspect of financial planning. The Bahamas Weekly. Retrieved from http: //www. thebahamasweekly. com/publish/investing-in-you-glen-s-ferguson/Financial_Planning_-_The_Most_Important_Aspect_of_Financial_Planning11378.shtml Investment planning. (2011). Retrieved from http: //www. investorwords. com/11657/investment_planning. html Retirement planning. In (2011). Investopedia. Retrieved from http: //www. investopedia. com/terms/r/retirement-planning. asp