Financial planning

TRowe Price :
 * 1) Define your goals and set priorities
 * 2) Determine how much you need to save to meet your goals
 * 3) Find the right asset allocation given your particular time horizon
 * 4) Stay focused so you can keep your plans on track

Financial Planning Association Financial planning is a process, not a product
 * 1) Establish Goals
 * 2) Gather Data
 * 3) Analyze & Evaluate Your Financial Status
 * 4) Develop a Plan
 * 5) Implement the Plan
 * 6) Monitor the Plan & Make Necessary Adjustments

360 degrees :
 * 1) Before you start- organize, net worth, debt situation, adequate insurance, realistic budget, emergency reserves
 * 2) Saving versus investing- cds, bank savings accounts vs. fluctuating investments (stocks, bonds, real estate, precious metals)
 * 3) What is the best way to invest?
 * Get in the habit of saving. Set aside a portion of your income regularly.
 * Invest in financial markets so your money can grow at a meaningful rate.
 * Don't put all your eggs in one basket. Though it doesn't guarantee a profit or ensure against the possibility of loss, having multiple types of investments may help reduce the impact of a loss on any single investment.
 * Focus on long-term potential rather than short-term price fluctuations.
 * Ask questions and become educated before making any investment.
 * Invest with your head, not with your stomach or heart. Avoid the urge to invest based on how you feel about an investment.
 * 4 Understand the impact of time
 * 5 Review your progress

How to
 * 1) What Is The Purpose Of Your Investments? An Investment Plan Needs A Main Purpose
 * 2) When Will You Need To Use The Money? An Investment Plan Needs A Time Frame
 * 3) Do You Understand Investment Risk? An Investment Plan Needs To Account For The Level Of Risk You Are Comfortable Taking
 * 4) How Much Money Do You Have To Invest? Your Investment Plan Needs To Specify How Much You Will Invest, and How Often
 * 5) Have You Made A List Of Available Investment Choices? You Can't Create A Good Investment Plan Until You Understand The Choices Available

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 * 1) Step 1: Create a budget and track your expenses
 * 2) Step 2: Pay off your existing credit card debts
 * 3) Step 3: Save effectively for a rainy day
 * 4) Step 4: Design a disciplined savings program
 * 5) Step 5: Invest in education, pension, and retirement insurance plans
 * 6) Step 6: Buy yourself your dream home
 * 7) Step 7: Invest in a diversified investment program or systematic investment plan

Sample consolidated outline:
1.	Establish Goals - What Is The Purpose Of Your Investments?
 * a.	Define your goals
 * i.	Retirement
 * ii.	Owning vs Renting
 * iii.	Children and their College Savings
 * b.	Determine the time needed to reach goals: short, medium, and long term
 * c.    Set priorities

2.	Gather Data - Before you start- organize, net worth, debt situation, current insurance, current budget, current emergency reserves

3.	Analyze & Evaluate Your Financial Status
 * a.    Are you ready to invest?
 * i.   Emergency fund established
 * ii.  Household budgeting - do you have enough left over for investing?

4.	Develop a Plan
 * a.	Create a realistic budget with adequate insurance
 * b.	Plan for paying off existing credit card debts and other loans
 * c.	Plan for building an adequate emergency fund
 * d.	Understand your need, willingness and ability to take investment risk
 * e.	Plan for saving to meet your goals
 * i.   The time horizon will define your investing strategy (dream home, retirement, college)
 * ii.	Design a disciplined savings program
 * f.	Write an Investment Policy Statement (IPS) or Investing plan

5.	Implement the Plan
 * a.	Track your expenses and stay within your budget
 * b.	Pay off credit card debt and loans
 * c.	Complete saving for the emergency fund
 * d.	Buy a home if that is in your plan
 * e.	Execute the IPS

6.	Monitor the Plan & Make Necessary Adjustments