It’s quite hard to achieve your goals if you have a good map. After all, life throws you a lot of curve balls. There is conflicting advice from different people – including your advisers – they all have different agendas. There may be a property management headaches, problems in the family, rising costs, changing government regulations, and much more. It is hard enough to manage even a good plan. Imagine how you want to do without it.
We’re going to be talking about personal financial planning in future articles so let’s start now. Develop a plan to get rid of your bad debt as quickly as you can. Now, don’t go get a second mortgage on your house just to pay down your credit cards but do figure out a way to pay those cards off ASAP.
Life Insurance Plan = It is always said that one should not look at the Life insurance plan as tax saving. We also suggest you the same thing.All life insurance plans gives you the tax benefit so you should always go for plan which is suitable to your life and your financial planning.You need not buy every year new policy. If you think that you have already invested enough in life insurance plan but want to invest again then you should go for ULIP plans. Payout from life insurance policy is tax free.
Fix your fixed expenditures. This is just another way to say that no bill should take you by surprise. You must admit that presently you are not quite prepared to receive bills. Wouldn’t be easier if you received all that bills at once, on your pay day? Think of it. Well, they may not send you the bills on the same day, when you have where to pay them from, but this doesn’t mean that you can not act as if they would. Just pretend, and put that numeraire apart.
If you are into a business, you should have many experts giving you advice. You may have experts in the field of marketing, sales, administration, research & development, strategic management, cash flow management, financial management, asset management, psychological counsellors etc.
Beta – This tells us how much your investment correlates to the stock market. In an investment has a Beta of then if financial planning services the market goes up by then your investment went up by conversely if it went down by then you went down your investment is correlating perfect with the stock market. If you’re looking at something with a Beta of higher than 1.0 then you should expect more volatility in it. If the Beta is 1.7 then if the market goes down 10% you would expect to go down 17%. Beta’s can also be negative such as with some US Treasury investments; it means that if stocks go down, then you go up. When you see the term Beta, you can think “volatility”, but more specifically “correlation to the market”.
How do you get where you want to go? Are you willing to drive everywhere? Check out those gas prices. Does the area you are looking at have public transportation that is convenient to do grocery shopping, travel to the mall, take you to the cruise ship? What about airports? International or domestic? The FAA has maps showing major U.S. airports with links to smaller or regional airports. Don’t forget the train or bus lines.
In the end, the decision is still yours. Someone could review financial planners wonderfully, but if you don’t really feel like they’re right for you, you will still not go for it. So, make sure to give yourself ample choices by researching as much as you can. This way, you can definitely weed out and select the one that matches your needs.