Features of Financial Planning - Full Financial Plan for Paul and Suzy Brown - Example

The paper “Features of Financial Planning - Full Financial Plan for Paul and Suzy Brown” is a perfect example of a finance & accounting business plan. One possible option to increase your savings, using superannuation is by contributing through salary sacrifice when employed. Salary sacrifice involves the diversion of part of your pre-tax salary into your super account. This is an arrangement between you and your employer. You do not receive this amount as salary after tax, but it is contributed directly to your super. This helps you to save on the income tax you pay and increase your retirement savings. However, you should consider whether you can sacrifice your salary without impacting your lifestyle significantly and whether your employer is willing to cooperate. Sacrificing an amount that is more than $25,000 will attract higher rates of tax.

Financial planning is a process of the process setting objectives, assessing property and resources, estimating future financial requirements, and making plans to achieve financial goals (WiseGEEK, 2012). It needs obedience so that one can achieve the projected objectives. It is worth knowing one’s source of income, and how to save and invest. One must also have prior plans for the achievement of these goals in the future. In addition to knowing the sources of income, one should know cash outflows. Many elements may be involved in financial planning. These elements include investing, asset allocation, tax, retirement, and estate planning, and risk management. Therefore, financial planning, as a process, involves many steps.

The first step in financial planning is noting and listing down one’s investment goals. It is critical to creating successful financial plans because one is able to rank competing financial goals. The investment goals can include buying a home, planning for a vacation, and child education. While listing down the goals, there must be clearly outlined timelines for each goal. For instance, one can plan to buy a home. In stating this goal, s/he should specify the goal by providing details such as the value of the home to be bought and the time when it is anticipated to be bought.