Part Three
By Greg C. Cash
Portfolio Management
Portfolio management is crucial in a financial plan, but it is not to be confused with financial planning. Portfolio management allows you to pair investments together to see the opportunities, risk, benefits, strengths and weakness of such investment. Portfolio management is a skill which is required to choose effective investment instruments such as real estate investment trusts, money markets, mutual funds, individual stocks etc.
Each and every one of us has dreams, aspirations and ambitions which we intend to fulfill at some point of our lives. These aims and objectives will not see the light of the day if proper planning isn’t done. Financial planning is not only important because it helps you to note the right investments. It is also helpful because it sees you through your professional life/youthful years down to your retirement age.
A lot of people are living in regret today because they failed to create a financial plan when they were young. Some are still fighting it out toe-to-toe with their employees to obtain their pension. The earlier you start formulating a financial plan, the better it becomes to secure your financial future.
Wealth Management
Wealth management is a process whereby a consultant obtains information on a client’s financial life and offers services increase and grow the long-term wealth ambition of the client. Many net worth individuals are persuaded to plough money into real estate investment trusts companies. This is because they are made to believe that the real estate business can boost their wealth.
A wealth manager is a typical financial advisor who advises individuals on the best investment instrument that suits them. A wealth manager can advise an individual to invest in individual stocks simply because it is easier to manage.
Conclusion
With what we’ve discussed here, it is safe to say that financial planning is not obsolete, but remains relevant in today’s world. It is vitally, important to start early in making a financial plan, however, you can still choose to take up some relevant points involved even if you are retired.