In financial planning, investment is one way to achieve our financial goals. But often when investing, we become less precise target, going the wrong way or even be disastrous. Investment management in financial planning is one of the investment so that we are right on target and right action. There are at least five steps of managing a modest investment that you can wear in the implementation of your investment.
Specify The Purpose Of Life
Determine the purpose of life is an important step. The happiness of the world and the hereafter is the destination which is generally to be achieved by us as believers. But unfortunately the definition of happiness the same between each other. Some are happy with just having sufficient funds for retirement, some are unhappy with the education his children provided. Therefore, the first to be determined is what things are expected to be reached in order for us to be happy.
Determine the needs and desires of the
The goal that we have been able to write down which is outlined needs and desires or ideals. A need is something that should be achieved as to fulfill our life, which, if not met then it will reduce the feeling of happiness or well-being. While the desire is something in addition to the requirements expected to be achieved in order to be happy, but if not met then it would not reduce welfare.
Specify The Phases Of Life Goals
Each of us will undergo phases of life are often referred to as Life Cycle. In the context of Financial Planning, this stage generally consists of accumulated wealth, wealth consolidation, phase and phase expenditure/enjoy the wealth. This stage depends greatly on hope (age) live and view of life.
Define Financial goals and objectives
To achieve happiness at each stage of life, we will need the money or wealth to support the attainment of the purpose of life at every stage of life. So we need to define financial goals and objectives at each stage of life, which will clarify the action plan.
Create strategies and Plans
To achieve the financial goals and objectives at each stage of life, we need to devise strategies and plans. Given at each stage of life has different characteristics, it needs to be drafted a strategy and investment plans over the wealth obtained at the stage of accumulation and consolidation phase.