Why Investment Planning is Important?

Investment planning helps you choose the right investments as per your financial goals and objectives. Nowadays, there are various types of investment planning in the form of cash, bonds, securities, and properties. So according to the funds available, we can invest in these plans to obtain our desired goals and objectives.

Objectives of Investment Planning

The three most important objectives of investment planning are the growth of the invested amount, the safety of money, and income generation. Besides, other objectives include tax minimization and liquidity of the investment.

Importance of Investment Planning

Here are some reasons why investment planning with the help of your financial advisor is important for achieving your financial goals and objectives

Income Managed through Planning

Investment Planning helps us plan effectively your monthly expenditures, bill payments, taxes, etc. You are aware of how much you earn from salary, interest, dividends, and whether it is enough for fulfilling your financial objectives. This way, income is better managed through planning

Increase in Savings

Recording incomes and expenses in a financial plan make you aware of your savings. Hence, you can make a budget whether you are within budget or overspending. This will makes you aware of how much you need to save to reach your goals. Also, a sudden requirement of money can put you off track. Hence, it is important to invest in the money with high liquidity. This can be taken out easily when needed for educational purposes, serious illness or other important matters

Financial Security

Investment planning is not only important for individual security but can provide a financial security net to the family as well. Financial Security of the family is an important part of investment planning. Having family covered under security net gives an individual peace of mind

Maintaining the Standard of Living

Investment creates savings that bring an individual under a financial security net. This can be useful in difficult times. For example, the death of a working member of a family affects the standard of living. However, if the person has planned investments it acts as a source of income and helps the family to recover from the loss financially

Understanding of  Finance in a better way

Once an individual knows about the current financial situation, it becomes easy for him to evaluate investment or retirement plans which would be beneficial in the long run. Finance understanding gives you a whole new approach to your budget and improving control over your financial lifestyle