By   May 1, 2017

THE COMPONENTS OF FINANCIAL PLANNING. There are different levels of financial planning and they have a purpose of ensuring that a person receives growth, safety, and security. Financial planning have three levels. They include safe and secure plan, comfortable plan, and a rich plan. In the safe and secure financial plan you will find three components which include the protection component, saving and the growth components. The protection component consists of the basic financial plans like the car and home insurance, liability umbrella insurance, disability, life and health insurance. Any member of the family should be able to access these insurance covers regardless of who gets disabled and who dies. As you look for an insurance cover during the finance planning ensure that you focus on the strategy and not the product. For instance, all the insurance companies offer almost the same products and what you should concentrate on is the relationship you have with the company and not the products they are offering you. The growth component is the second component of finance planning which is a safe and secure plan. In this component of finance planning you are supposed to put away all the expenses for three to six months as a way of securing your account. In this financial plan you will be ensuring that your family will continue surviving even after you have stopped earning. With this financial plan the family will not suffer even if the breadwinner dies loses a job, or even becomes disabled. As the provider of the family you should put some money aside that your family will be using as you try to solve all your problems. You should also look for the benefits being offered by your company as a way of financial planning. Also, consider the retirement plan as one way of your financial planning because it is a savings plan. Retirement plan is a great accumulator of money of money because you can’t spend the money as a way of discipline.
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The third component where you do the financial planning is in the comfortable component. This is a component that you will use to build the real wealth. If you want to build the real wealth you will have to start with putting a little amount of money in the stock account or in the mutual funds account depending on the financial capability a person has. In this financial plan you can be able to move from the growth financial plan to a comfortable financial plan. With the right financial planning advisor you will know your current financial plans, you will get suggestions, and recommendations that will help you secure your long term financial future. The financial advisor you choose to work with should understand your financial aims and objectives so that they can be able to assist you to plan your finances successfully.What You Should Know About Investments This Year