We can't deny that everyone of us can't runaway from financial matters, thus, planning it wisely would put you on a better path to achieve financial goals as desired. Does this called "financial planning"? Hmmm... Many people think that financial planning is for high-income earner and the rich. But is this true? If not, what is it actually?
Generally, financial planning is a journey to achieve financial goals set with a comprehensive and systematic step-by-step process. It involves taking a broad view of one's financial affairs covering many areas of wealth management.
What's Included in Financial Planning?
- assessing your current financial net worth
- debts eliminations
- building savings
- ensuring that our assets and family are well protected by having adequate insurance coverage
- this is the wealth accumulation step, whereby investing a portion of your savings with the aim of getting a higher return.
- an investment strategy is needed to ensure greater success
- this is an area largely ignored or forgotten by most tax payers
- it involves strategies to optimize our income, including from investments, by legally minimizing the tax payable.
- this is crucial to ensure that your golden age won't be miserable
- start planning as young as possible, the better
- writing a will is the most common steps in this stage
- ensuring that your estate will be passed on to your beneficiaries, as you desired, smoothly and to avoid family disputes
|The 6 steps of financial planning|
According to licensed financial planner, Alex Yeoh (email: email@example.com), a solid financial plan should be more than just buying an insurance plan or having some unit trusts. It should cover 4 key areas, namely wealth management, wealth protection, wealth accumulation and wealth distribution.
The next question is: "Who should you sit down with to discuss financial planning?"
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