Business Advice
The Objectives And Benefits Of Investment Planning
One of the many ways in which entrepreneurs and business owners diversify their income is via investments. Investment planning, which is supported by professional financial advisors, is an excellent way to create multiple streams of income and can allow you to focus on building your business, whilst your investments contribute to building your wealth.
If you have never considered having an investment portfolio or are unsure what sorts of investments you can make, then the first port of call should be financial advisors, as their services will almost certainly include investment planning. In simple terms, investment planning is a means of identifying your financial goals and aspirations and marrying them to investment opportunities based on your financial resources.
Beyond that explanation, your financial advisors should go into detail about what the objectives of investment planning are, ensure you know why it is required, and also explain some of the many benefits that investment planning can produce. To get you one step ahead of that discussion, below we have briefly outlined some the of points your financial advisors may cover.
Objectives Of Investment Planning
To Minimize Risk: One of the key objectives your financial advisors have when they are investment planning with you is to ensure that your risk of losses is minimised to the lowest level possible.
To Generate Income: A core objective of any investment is that it should produce income and by shrewd investment planning, opportunities for generating income can be identified based on your financial goals and resources.
To Grow Your Capital Investment: Whilst some investments are made to generate ongoing income, others can be identified as a means of growing your capital investment. These tend to be low-risk investments designed to be kept over the long term.
To Reduce Your Tax Liability: Everyone want sot to pay fewer taxes (we hope) and during the discussions you have with your financial advisors, they will be able to explain how certain investment strategies can reduce your tax liability.