Question

Financial planning? explain and discuss the basic characteristics of financial plan

Answer 1

In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.[1]This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving in the future. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement!!!
it's characteristics are:
(1) Simplicity: A sound financial structure should provide simple financial structure which could be managed easily and understandable even to a layman. ...(2) Foresight: ...(3) Flexibility: ...(4) Optimum use of funds: ...(5) Liquidity: ...(6) Anticipation of contingencies: ...(7) Economy

Answer 2

It is comprehensive evaluation of an investors current.