The Best Financial Planning Tips Part 2

Creating an investment plan includes learning what type of investor you will be. Depending upon many factors you will be able to increase risk or reduce risk. Age is one of those factors. If you have many years be retirement and a good amount of money to invest, then a increase risk position may be the way to go. However, if you are near retirement or have less money to invest a reduce risk position is the answer.


An investment plan is nothing more than writing down your existing investments and potential investments. When creating an investment plan you must identify investment locations. Investment locations references to saving accounts, stocks, bonds etc. Now you can move on to include interest rate, initial principal and interest income. An example of a line item on an investment sheet would be a CD you purchase (18 month CD - initial investments amount - interest rate - interest income).

Creating a repayment plan is nothing more than writing down your debts. List the debt in the order of the highest interest rate. An example of a line item on your repayment plan would be your credit card (Visa - amount owed - interest rate). The debt with the highest interest rate should be paid first. Work your way down the list until all of you debts have been paid in full. Use your budget to determine where the funds to repay your debts will come from.


Hopefully, this will help you with your goals to create the best financial plan!