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Investing is a lot more than just calling
your broker and buying or selling. To be successful,
it's wise to plan ahead. But why should the average
investor have a financial plan?
"Cause everybody needs to save for their
future; everybody seems to be spending the money they
make today, today and they have no regard of Social
Security plan or anything like that going forward,"
says contractor Darrell Ipson.
But most people put at least a little
away, and the markets are full of investors who do more
than that.
"Financial planning is much more than
putting money away for a rainy day," says Arthur Nintzel
of Merrill Lynch. "In a financial plan, an investor
will receive a quantified objective. He'll know exactly
how much money he has to put away how much he needs
to earn on that money, and when he'll achieve his goal."
A common misconception is that financial
planning is only for the wealthy and the well connected.
But it's for the average Joe and Jane as well.
"Financial Planning is available to
anyone who has disposable income," says Nintzel. "When
I taught college courses, my lasses would define an
investor as an individual who had money left over in
his checking account having paid all his bills. People
with limited resources need financial planning most
of all."
Although many people already have a
financial plan in place, if you don't, it's not too
late to get started. Experts say a comprehensive plan
based on your risk tolerance threshold and personal
financial goals is the key to successful investing.
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