What Is Wealth Planning?

Financial planning refers to the use of scientific methods and specific procedures to develop realistic and operable for clients including cash planning, consumer spending planning, education planning risk management and insurance planning, tax planning, investment planning, retirement planning, property Allocation or inheritance planning and other aspects or comprehensive solutions enable customers to continuously improve the quality of life and ultimately achieve a lifetime of financial security, autonomy and freedom.

Financial planning

Financial planning refers to the use of scientific methods and specific procedures to develop practical and operable

Financial planning can be divided into corporate financial planning and enterprise financial planning.

Financial planning is the process of establishing an independent, safe, and free financial life system for you / your family to achieve the goals and dreams of each stage of your personal life / family and reach the financial freedom state at an early date!

Successful financial planning is a planned, step-by-step, continuous implementation and timely adjustment of financial planning.

After clarifying the customer's financial goals, financial preferences, financial situation and other factors, you should have a holistic assessment of the individual customer or his or her family. The evaluation mainly includes:

(1) Customer or family

To buy cost-effective homes at the right price requires certain skills:

(1) Buy but not buy . How to judge the best time to buy a house, the simple way is to look at the bank's attitude towards buying a house loan. Generally speaking, banks' attitudes towards loans are more authentic, accurate and credible than what experts say.

Loose banks indicate that the market is optimistic. Investors are rushing. House prices generally show an upward trend. Banks are tight, indicating that market risks are increasing, policy adjustments, and investors are withdrawing. Most sellers are anxious. Buyers are watching.

(2) See the supply-demand ratio through the average price. The increase of a certain type of house represents the demand and supply of the market. If the increase in supply and the real demand remains unchanged, the price of such a house will immediately fall, and this is the best time to buy a house.

(3) Don't rush to buy a guide-oriented house.

(4) Owner-type customers "buy down but not buy up".

(5) Self-occupied customers "buy down but not buy up". Real estate agents sell you unfamiliar phone calls, which proves that the market is not good, there are fewer customers buying houses in the market, and there are more opportunities to bargain with the landlord.

(6) Buying "expectations" has the potential for appreciation.

(7) Ordinary buyers do not have to be in one step. Convenience is the most practical.

(8) Care costs are carefully calculated in advance. The cost of maintaining a house must be considered when buying a house.

Financial management also has certain risks. Novices can look at the following suggestions to control risks:

Financial planning is generally divided into four steps:

The first step is to review your assets. Including the expectation of stock assets and future income, knowing how much money can be managed is the most basic premise;

The second step is to set financial goals. Need to qualitatively and quantitatively clear financial targets from specific time, amount and description of the target;

The third step is to figure out what type of risk appetite. Do not make assumptions about risk appetite without considering any objective situation. For example, many customers put all their money in the stock market, without considering parents, children, and family responsibilities. At this time, his risk appetite deviates from what he can bear. Range of

The fourth step is to carry out strategic

Investment is a big plan in life, and everyone's financial planning should first have a clear goal. Only with clear objectives can we start our investment in a planned way. Generally speaking, the main investment goals of people are nothing more than planned retirement protection and children.

Necessary asset liquidity

Individuals hold cash mainly to meet daily expenditure needs, prevent emergencies, and speculative needs. Individuals must ensure that they have sufficient funds to pay for planned and unplanned expenses, so financial planners must both ensure the liquidity of client funds and take into account the cost of cash holdings in cash planning to make short-term demand available through cash planning. The cash on hand is used to meet the expected cash expenditure through various savings and short-term investment vehicles.

2. Reasonable consumer expenditure

The primary purpose of personal financial goals is not to maximize personal value, but to make the personal financial situation sound and reasonable. In real life, reducing personal expenses is sometimes easier to achieve financial goals than seeking high investment returns. Through consumption expenditure planning, personal consumption expenditure is reasonable, and household income and expenditure structure is generally balanced.

3. Achieve educational expectations

Education is the foundation of life, and times change, and people have higher and higher requirements for education. Coupled with the rising cost of education, the proportion of education expenditure has become larger and larger. Clients need to plan education costs early, through reasonable financial planning, to ensure that they will be able to reasonably pay for their own and their children's education costs in the future, and fully meet personal (family) education expectations.

4. Complete risk protection

Risks are ubiquitous in a person's life. Financial planners make appropriate financial arrangements through risk management and insurance planning to minimize the losses caused by accidents, so that customers can better avoid risks and protect their lives.

5. Reasonable tax arrangements

Paying taxes is a statutory obligation for everyone, but taxpayers often want to minimize their tax burden. In order to achieve this goal, financial planners make full use of the preferential and differential treatment provided by the tax law to pre-plan and arrange economic activities such as the taxpayer's operations, investments, and financial management to appropriately reduce or delay tax expenditures.

6. Accumulate wealth

The increase in personal wealth can be achieved relatively by reducing expenditures, but the absolute increase in personal wealth must ultimately be achieved by increasing income. Salary income is limited, while investment has the characteristics of actively seeking higher returns. The rapid accumulation of personal wealth is mainly achieved by investment. According to financial goals, personal investable amount, and risk tolerance, financial planners can determine effective investment programs to increase the income of individuals or families, and gradually become the main source of personal or family income. Level of freedom.

7. Enjoy old age

As people reach old age, their ability to earn income will inevitably decline. Therefore, it is necessary to carry out financial planning in the young and middle ages, to achieve the dignity and self-reliance of old age, "to support the elderly, to have the old age, to have the pleasure of the old." Goals of old life.

8. Desirable property distribution and inheritance

Property distribution and inheritance is an unavoidable part of personal financial planning. Financial planners must minimize the expenditures incurred during the process of asset allocation and inheritance, and assist clients in the reasonable distribution of property to meet the needs of family members at different stages of family development. Needs; choose heritage management tools and develop a distribution plan to ensure that family property can be passed from generation to generation when a client dies or becomes incapacitated.