Personal Finance 1st Edition by Jack R. Kapoor

Exercise 23

1. What are the main components of personal financial planning?

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2. What is the purpose of a financial plan?

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3. Identify some common actions taken to achieve financial goals.

Action Application Prepare a list of questions that might be asked of a financial planning professional by (1) a young professional starting out on his or her own, (2) a young couple planning for their children’s education and for their own retirement, and (3) a person nearing retirement.

Step 1 of 3

1.

Main components of personal financial planning are as follows:

• Obtaining funds

• Planning

• Saving

• Borrowing

• Spending

• Managing risk

• Investing

• Retirement & estate planning.