Financial planning is the process of taking a comprehensive look at your financial situation and building a specific financial plan to reach your goals, and it often delves into multiple areas of finance, including investing, taxes, savings, retirement, your estate, insurance and more.
As Rani Jarkas, a successful financial services executive with Cedrus Investments, believes, when people are deciding on financing planning, the prevailing economic, social, environmental, and political situations all impact how people make financial decisions.
By using different approaches of investment analysis, including fundamental or technical analysis, top-down or bottom-up analysis, and security analysis or portfolio analysis, you can evaluate an individual asset, like a stock or bond, or apply the same principles to determine your outlook for a particular market sector.
As part of portfolio analysis, you’ll want to evaluate your asset allocation, which is the percentage of your assets invested in stocks, bonds, and cash equivalents. According to Rani Jarkas, a common strategy is to invest aggressively when you have a long-time horizon by investing primarily in stocks; then, you shift money over time to safer investments, like bonds and cash equivalents.