Financial Planning - UAB - The University of Alabama at 财务计划- UAB -阿拉巴马大学.pptVIP

Financial Planning Financial planning is an essential part of life management as well as of practice management. It must be instituted early in a career and given priority.Planning is facilitated by the setting of goals (short- to long-term); for financial planning these goals concern: budgeting taxes insurance investments retirement income estate planning A beginning practitioner should institute a financial plan with the same care as a practice plan. There are 5 steps to be taken: current financial status must be calculated financial goals and objectives must be put into writing financial counselors must be selected financial goals must be prioritized and a plan developed to achieve them periodic review of progress must be performed The process of planning begins with the calculation of net worth on a financial statement. Assets and liabilities are listed, and a “bottom line” result is obtained that, for many beginning practitioners, is humbling.However, this is a necessary step to recognizing where priorities must be directed (e.g., payment of long-term debt) and where assets are needed (e.g., cash for purchase of a home). Goals: Budgeting A first goal in financial planning is to develop a budget; income should be monitored, as should fixed and discretionary spending (limited to 6% to 8% of monthly income); debt service (e.g., educational loans, mortgage) should be less than 30% of income.Once a debt is paid, that income should be directed at savings or investments rather than at increases in the standard of living. Budgeting is the best way to ensure that income is used as needed rather than wasted on unnecessary expenditures. Statistics show that repayment of educational loans by students varies: ? within 5 years—49% ? within 5 to 10 years—20% ? more than 10 years—14% ? don’t know (!)—17%Consolidation of loans, deferment during residency training, auto-payment when employment is obtained, and avoiding an extended repayment period a