What other policies besides investments are useful in financial planning and why?

Expert Solution

Policies which are useful in financial planning decide investment are as follows-

A. Income management policy- it is related to the level of income which is generated by the individual and individual will be trying to plan for making higher incomes

B. Expense management policies- management of expenditures in regards to obtainment of debt capital and continuous credit should be always planned by the individuals and companies.

C. insurance policies are also important aspect of the overall financial policies because they are eliminating risk associated with uncertainty in life

D. Emergency plans are reflecting preparedness level of the individual to deal with adverse situations in life.

E. saving policies are also associated with management of the savings and deposits in various banks and it is not about investment so they will be saving in various bank accounts in order to manage their future expenditure.

F. tax planning is another important aspect of overall investment planning because it is helping the individual to manage taxes in order to focus more on saving.

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