Flashcards in Topic 5: Financial Planning Deck (9):
What are the purposes of financial planning
Life events - car, house, children
Retirement- Pension is sufficient
Death - Inheritance tax and possessions are catered for
What can planning be dependent on
Family, finance, lifestyle, personality and attitude to risk
Give examples of positive and negative unexpected financial events
P - Winning the lottery, promotion
N - Illness, redundancy, stolen property
What 5 things must a financial plan be?
What's a budget
Personal financial plan drawn up each month. Income and expenses
Whats a cash flow forecast
A budget for the whole year
Where do you start when planning a budget or forecast?
Balance of accounts, income, assets - liability, insurance, expenditure
What's a financial health check?
HSBC use this to create a picture of a person's current financial position - their credit rating