Ernst & Young's Financial Planning Essentials

[SpaRker]

BOOK REVIEW: Ernst & Young’s Financial Planning Essentials
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For most people financial planning is a challenge. This can be a helpful book
Mainly the book is about 3 things;
• Why do financial planning?
• Saving money and investing wisely.
• Protecting your family through estate planning and purchasing insurance.
There are guidelines on Calculating your Net worth inform of assets and liabilities, planning for retirement etc
This is mainly to gain a general sense of where your money comes from and where you’re spending it.

The book also has Procedures to help you identify short and long term goals and how to get them into action, keeping records etc. . And they give you ways on how to analyze these.

Guidelines on how to make a budget and how to implement it. For example, If you find that your expenditures exceed your income—or even if the situation seems headed in that direction—you must take immediate action. Otherwise, you’re headed for trouble.
There is chapter on Different types of debt like Home Mortgage, Investment Debt and Personal debt and interests rates you are paying on them.
They also discuss Common sources of debt like credit cards and impulsive spending.
They give suggestions on Debt management, Let’s say you’ve concluded that you have too much debt, and you’ve resolved to reduce it. What are your options? What can you do to increase your income?

A chapter on types of financial planners just in case you need to choose one. And how to know if the financial planner you’ve selected is qualified and responsive to your individual needs.

Explains types retirement plans and gives a few examples on how these work.
They also talk about big mistakes in investing like no contingency accounts, jumping on the band wagon etc

There also some few tax-advantaged savings vehicles that you would love know.
Some introduction to major investment vehicles, like cash (CDs,passbook acc etc), stocks, real estate foreign investments and some short notes on how to acquire them. Best way to reduce the risks on bonds you buy?
Like I said, they a give a brief introduction like definitions, comparisons, historical average returns but also there some links to get more information

They also discuss on quantifying risk and ways to minimize risk like diversification. Transaction costs involved in investments which mainly commissions and income taxes.
And of course, how to monitor your investments!

A chapter on Insurance and some of the recommend insurance policies to take up. Examples on how to identify your own insurance needs now and how to obtain them. Big mistakes in insurance, etc

A chapter on Estate planning for you family. At least if you are not able to read whole book, this is a great chapter you can focus on. This includes making wills and where to keep them, choosing trustees etc
The book also highlights mistakes in estate planning like holding all assets jointly and so many others

• This topic was modified 6 years, 10 months ago by SpaRker.

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