Is Personal Financing Only About Investing Money?

                        Scope Of Personal Financing

In our country, people think personal financing is only about investing the money or management of the portfolio. Personal Financing is taking about all the decisions in your financial career at a various stages in your life correctly. It guides you to take your financial decisions like (Buying A Second Home, Insurance According To Your Needs, Taxation, Reverse Mortgage). Scope of Personal Financing includes:

1. Insurance Planning.

2. Retirement Planning.

3. Estate Planning.

4. Tax Planning.

What is Insurance Planning?

Insurance Planning is the protection of your family, your loved ones, your assets, business, your home against various peril and hazards. It is the basic component of a personal financing. To choose an appropriate plan for the client by analysing all the risks is the most important thing. Insurance is a device transferring risk from an individual to a insurance company and reducing the uncertainty of risk via sharing with others. Insurance eases financial burdens that can occur when disaster strikes.

What is Retirement Planning?

Retirement Planning is the planning of life when one's paid work ends, not financially but in all aspects of life. The various aspects include lifestyle choices such as how to spend time in retirement, where to live and several other things. Previously, retirement planning is about setting aside enough money for retirement but now people also have a dreams in their eyes which they want to accomplish after retirement. In retirement phase, decades of your saving are paying out. To plan this phase of your life and make it supremely happy is an important task for a financial planner in personal finance.

What is Estate Planning?

Everyone has a estate. Your estate is comprised of everything you own- your car, home, saving accounts, investments, life insurance etc. You can't take it when you die. You need to plan all this and this is called estate planning. Estate Planning is for everyone. It is the care of your loved one's, family when you are not actually there to take care of them. You should do this by considering a proper person in this field whom you can trust and expect best advice and guidance.

What is Tax Planning?

Tax Planning plays a vital role in all aspects of finance. The purpose of tax planning is to ensure tax efficiency. The selection of investments and types of retirement plans must complement the possible deduction of tax. It includes taking the maximum advantage under various tax reductions given by the government. It includes timing of income, size, timing of purchases and planning for expenditures or engaging in tax gain-loss harvesting.