Question

summarize in which you describe the practices you will implement to manage your personal financial plan and meet financial goals. Provide a description of practices for all of the six major components of a financial plan:

1. Planning Tools
2. Managing Liquidity
3. Financing (Loans Large and Small)
4. Protecting Your Wealth (Assets and Income – Insurance Options)
5. Investing Your Money
6. Planning Your Retirement and Estate

Provide an explanation of why your implementation plan for managing the six components and meeting your personal finical goals will be effective. Discuss ways to assess whether or not your goals have been met.

Answer 1

Every person has his own financial plan in order to survive or lead or fulfill his / her dream / life they need financial plan. There are mainly 6 components of financial plan they are

1 planning tools - every person first set goals whether it should be long term or short term,but goals must be specific ,clear and attainable.planning tools are budget,savings , retirement plan etc.

2.managing liquidity-. Liquidity means cash or cash equivalent.it needs because to meet day to day expense or meeting emergency.where there is liquidity it helps to meet risk.therfore should manage liquidity by savings or purchase at affordable prices, planning etc.

3.financing- every person bear day to day expansess for leading his life even he has dream to purchase furniture ,taking vacation etc these are all short term finance. Buying home ,car ,costly furniture etc these are all ling term financing .therfore in step 1finacial planning should determine shirt term or long term financing

4.Protectingour wealth- it is necessary to face risk or leading life we should protect our wealth.it may be via savings, retirement plan or insurance plan or investing funds in various sources.if we protect our wealth then only we active our financial requirements.

5.investing your money- from the above we discuss to protect our wealth we should invest money in various financial scheme like insurance plan,banking ,mutual funds, stock market etc. Then only we can get return,but plan must be safe and secure.

6. Planning your retirement and estate.- every person should think about future because when we attained a age of 60 and above we don't have employment,can't do any work therfore now only we have plan .insurance various plans helps to get retirement benefit even banking saving schemes ,post iffice saving schemes helps to our retirement financial plan

These are all financial components helps to achieve our financial requirements.retierment plan ,estate plan ,savings scheme helps to achieve our financial plan and fulfill our alk dreams.