Financial Planning Reflection

By Author: Sherry Roberts
Total Articles: 99
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Retirement planning is an integral part of personal financial planning process. It ensures that an individual has the necessary sources of income to retire comfortably. In addition, most individuals anticipate retiring early and engaging in other issues. However, retirement does not imply that expenses such as children upkeep, vacation, car gas, houses and food will not exist. The Money Tree Software has enabled us to create a retirement plan that focuses on three key aspects. First, the software focuses on the financial needs of an individual during retirement. Secondly, helps one plan for the sources of income during retirement. Thirdly, one can be able to evaluate the current saving situation. The key goal of retirement planning is to ensure one accumulate adequate financing capital to last the entire retirement while still funding one’s goals and objectives.
In order to facilitate financial planning, there are many softwares. One such software is the Money Tree software used in the current activity. These softwares make the process of financial planning easier and more effective. An individual can be able to simulate ...
... different scenarios to achieve the optimum scenario with the best alternative.
The financial planning process was insightful and informing. Through the process, I have learned the salary scale of numerous professions which helped me form the basis of retirement planning. In addition, I have learned several concepts regarding retirement planning such as the need to ensure a steady flow of income even after retirement. The process has enabled me realize that most of the expenses remain after retirement and as such it is critical to ensure income inflow in retirement is stable. I have learned the impact of investment plans such as pension, insurance, properties and personal saving. The earlier one starts to save the stable the retirement age. Diversification of saving is also a critical element. A diversified saving and investment plan increases the retirement capital and one need to start making investment and saving at an early age. According to the retirement capital analysis, I have realized I included only two sources of income that include pensions and social security. In addition, I have seen my retirement spending is too high and need to be adjusted to match my income. Education is one of the greatest spending areas. However, it is possible to reduce education spending in old age by ensuring one bring up a family earlier and ensure all children are through with education before retirement. In addition, one can reduce retirement spending by reducing non-essential expenses such as extravagant vacations and luxury cars.
In conclusion, the financial plan exercise provides fundamental skills and knowledge that promote wise spending and saving. A comprehensive personal financial planning can help and individual enjoy retirement age and meet need critical needs such as the need for medical services.

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