Personal Financial Analysis Plan Essay Example | Topics and Well Written Essays - 750 words

Personal Financial Analysis Plan - Essay ExampleThese financial aras include enthronization into bonds/stocks, purchasing a real estate, indemnification c everyplaceage as well as income generating activities. My ultimate get under ones skin is to create a portfolio of such assets so that a consistent cash flow is being delivered to me end-to-end my retirement life.Out of the $100,000/- I would allocate $100,000 to purchase 30 years bonds of a large deal which can add return equivalent to the return of 5% to 7% whereas $100,000/- of existing financial resources are going to be invested into the purchase of stocks of a blue-chip social club having a history of providing consistent burgeon forth of dividends. I excessively intend to buy a small piece of real estate at the total investment of $250,000 whereas I also intend to purchase an insurance cover which not lone(prenominal) pay for my medical expenses but guarantee a consistent annuity amount over the hitch of retire ment life.A bond is a long term security which provides a constant/ varying rate of return called coupon over the period of its life besides returning back the investment made into it. Bonds are considered as less risky than the stocks as they guarantee a consistent frozen income over the period of investment and offer priority rights to the bondholders in case of liquidation. They are considered as better(p) financial securities for planning retirement. (Investopedia, 2008).Stocks on the other hand are the shares in a companys equity and holders are given the status of shareholder in the business. They are more risky than bonds because return on them is not variable but also subject to fluctuations into the financial position of the company. Further, from a retirement planning pane of view this can be more risky as it is not necessary and obligatory for the company to pay dividends to their shareholders. (Investopedia, 2008).Investing into real estate is now considered as one of the most lucrative throw of investment as it not only appreciate in value but also provide a consistent stream of rental income over the contractual period.Insurance covers especially life insurance provide you an opportunity to protect your family in case of your death and after the retirement can also guarantee you a consistent stream of income out of the insurance premium you have accrued over the period of time. (About.com, 2008).ConclusionPreparing for after retirement period is one of the most critical issue in ones life as when approach that phase of your life where you may not be able to feed as good as you were able to do in your youth. It is therefore of critical importance that ain financial planning for the future should be strong enough to ensure that all your financial postulate are fulfilled.Investing into various real as well as financial assets is an excellent counselling through which one can plan to achieve a good mix of assets guaranteeing the overall move ment of financial goals of a person. My personal financial