What is investment planning?
Investment planning is the process of matching your financial goals and objectives with your financial resources. Investment planning is a core component of financial planning. It is impossible to have one without the other.
There are many ways that you can save or invest, and while we all want our money to grow, it's important to think about the level of risk you might be willing to take with your hard-earned cash. It's about achieving a good balance.
You could decide to save a manageable amount each month from your take home pay to cover your living costs, larger expenses and the unexpected.
Benefits of Investment Planning
Investment planning helps you achieve:
- Generate income and/or capital gains.
- Enhance your future wealth.
- Strengthen your investment portfolio.
- Save on taxes.
Difference between financial planning & investment planning?
Things like savings, budgeting, insurance, investments, taxes, estate planning, and retirement are all part of a solid financial plan. Investment planning is about creating an investment plan and sticking to it (even when you see your investments go down). It factors in your risk tolerance, diversification, and asset allocation, in order to maximize your returns.