What are the five categories of financial planning?

The five pillars of financial planning—investments, income planning, insurance, tax planning, and estate planning— are a simple but comprehensive approach to financial planning. They are foundational in the course for financial freedom in any financial plan.

What are the four types of financial planners?

The Four Types of Financial Advisors

  • The Broker. Many brokers or “registered representatives” now charge an annual fee based on the market value of your portfolio.
  • The Independent or Dually-registered.
  • The Fee-only Fiduciary.
  • The Hourly Planner.

What is financial business plan?

What is a Financial Plan? A financial plan helps determine if an idea is sustainable, and then keeps you on track to financial health as your business matures. It’s an integral part to an overall business plan and is made up of three financial statements—cash flow statement, income statement and balance sheet.

What are the tools of financial planning?

Financial Planning Tools are the instruments used to meet current and future financial goals through a sound financial plan….Protection Tools

  • Traditional Life Insurance.
  • VUL Life Insurance.
  • Health Insurance.
  • Non-Life Insurance (car insurance, fire insurance, property insurance)
  • Pension Plan.
  • Educational Plan.
  • Funeral Plan.

What are the six areas of financial planning?

Six Areas of Financial Planning

  • Cash reserve levels.
  • Cash reserve strategies.
  • Debt management.
  • Cash flow management.
  • Net worth.
  • Discretionary income.
  • Expected large inflow/outflow.
  • Lines of credit.

What are the two types of financial planners?

There are two main types of investment professionals to consider — “registered representatives” (more commonly referred to as brokers) and “investment adviser representatives” (often referred to as financial advisors or investment advisors).

What’s the difference between financial advisor and financial planner?

A financial planner is a professional who helps individuals and organizations create a strategy to meet long-term financial goals. “Financial advisor” is a broader category that can also include brokers, money managers, insurance agents, or bankers. There is no single body in charge of regulating financial planners.

What is financial control system?

Financial controls are the procedures, policies, and means by which an organization monitors and controls the direction, allocation, and usage of its financial resources. Financial controls are at the very core of resource management and operational efficiency in any organization.