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Financial Planning on the other hand is on a larger scale and includes everything from investment planning, savings, expenditure to paying of debts and bills. Here what you plan affects you other areas of financial concerns.

 

 

 

 

On a general man to man basis Financial Planning is of more importance when compared to investment planning. If a man fails to save money, then where is he going to make the investment from? It is here that the need to emphasize on a strong financial plan comes to play. Financial planning is on a larger scale compared to Investment planning. Where investment planning is individual oriented, financial planning takes into account the needs of the individual and family. Financial planning is the process of assessing the financial goals of an individual at different junctures of his life. It takes into account all assets and investments that he already has and what others he may require to achieve his financial goals in the near future. The prime objective here is to ensure that the required amount of money is there with him at the time of an investment, thereby enabling him to meet his personal goals. This is how financial planning and investment planning relate to each other. Coming to the investment part, security along with profit is a big question?

Any investment depicts a clear picture of your current financial situation. Bifurcate your investments amongst various assets to reduce the risk factor. Asset Allocation is the best way to ensure that a particular investment made is a success. Monitoring your investment to maintain the allocation with your financial goals makes the investment tax efficient.

 

Following are certain points as to how one can better their investment and financial planning:

 

Investment Planning:

 

 

 

1) Create a Budget for Monthly Expenses: This enables you to get a clear picture as to where your expenses lie and how much unnecessary expenditure you could curtail to save a decent percentage of your income.

 

2) Paying of Debts: Once you clear of your debts, a certain amount of your expenditure is saved. This can be used for investment purposes.

 

3) Emergency Savings: Emergencies do arrive unannounced. One has to ensure that a

certain amount is kept aside to meet these situations. These funds should be invested or

kept aside to meet these situations. These funds should be invested or kept aside in

investments that can be accessed anytime you need cash.

 

4) Investing in Long term Assets: Investing in long term Assets is a good decision. Purchasing a house is considered to be a good investment as payments towards interest and real estate taxes are tax deductible. Secondly the value of property increases with time. Other then this investing wisely in Mutual Funds, stocks and insurance will provide you with a good return on your investment.

 

 

Financial Planning:

 

1) Using a monthly spending plan or budget to keep finances on track

2) Making decisions about the job and its benefits

3) Getting the most out of other financial resources, including insurance and employer provided benefits.

4) Saving and investing money

5) Controlling expenses and staying out of debt.

6) Planning for estate transfer.

 

Generally people enlist the services of a financial planner prior to making any major investments. A financial planner is a professional who helps people deal with various personal financial issues through proper planning, which includes cash flow management, education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and business succession planning. While dealing with Mutual Fund Investments they are called “Fund Managers” and it is them who determine the performance of a fund. Investment and financial planning if made wisely definitely guarantees you security and long term financial gains and keeps you financially independent through out your life.

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Feldman Law Center – Loan Modification News by Feldman Law Center — Part of Obama’s plan to overhaul regulation of the mortgage industry, unveiled last week, would create a Consumer Financial Protection Agency to monitor consumer financial products and change the entire process of getting a mortgage. With a stated goal of developing a mortgage process that is as simple as signing up for a retirement plan, the President’s proposal centers on an automatic offering of a “plain vanilla loan” to potential homebuyers. These loans would offer fixed interest rates and 30 year maturities, unless the borrower opts for a loan with riskier terms such as interest only or adjustable rates.

The plan has received vehement opposition from the mortgage and banking industries who say that government-approved mortgages would restrict borrowers’ options, make loans harder to get, and make them potentially more expensive. Powerful trade groups like the American Bankers Association, for example, oppose creating a consumer financial protection agency. Even lobbying groups open to the idea of a consumer-products regulator question whether the government should suggest which mortgages are best for consumers. “We don’t want to stifle innovation, and we don’t want to stifle competition,” said John Courson, president of the Mortgage Bankers Association.

One thing that would definitely be restricted, and one of the main factors behind these groups’ opposition to the plan, will be the potential commissions that mortgage brokers can charge when they sell a mortgage. For example, administration officials want to curb the fees that brokers and lenders receive tied to inflated mortgage rates. Brokers argue the incorporating those fees are a way for borrowers to amortize the costs of a loan without having to come up with thousands of dollars in closing costs. Another aspect of the plan would link compensation to whether the borrower ends up defaulting on the mortgage. “There’s no reason that we should have to assume that risk,” said Marc Savitt, president of the National Association of Mortgage Brokers. The group’s stance is that while a mortgage broker can facilitate a loan, the ultimate approval for the mortgage comes from the lender.

Mortgage brokers’ fees were typically highest on the most creative and dangerous of the mortgage varieties. With those mortgages a thing of the past, volume, commissions, and their share of new business has dwindled. Mortgage brokers’ share of new loans has dropped from a high of 60% to the current 20%, on much lower volume. Fixed rate mortgages have increased from a low of 50% of the total of new loans originated in 2004-05 to 95% today.

As the plan stands now, the newly created agency would approve a set of mortgages including fixed and adjustable rate mortgages. Approval for vanilla mortgages would be similar to the “prime mortgage” approval process. Potential home buyers could still get mortgages outside of the government approved versions but disclosure of risks and dire warnings will accompany them.

Supporters of the new regulatory agency say that it is needed as much to protect borrowers from themselves as from predatory lending practices. Many borrowers went through the process of getting their mortgage without ever taking the time to understand exactly how the loans they were applying for worked and where the risks were. Still, previous Congressional efforts to regulate the mortgage industry have consistently broken down over the years, even on simple issues such paperwork reduction, so the fight could be long, drawn out, and years in the making.