compound 6-40 years increase reduce things we own an emergency long before 1. Increased events. to accommodate significant life changes and 2. informed decision making regarding current and deferred spending. 2. Financial goals describe the desired of your financial planning activities. Most financial advisors recommend developing goals with three broad categories of completion dates: Long-term goals, which identify wants and needs that are expected to be realized from now. Short-term goals, which address more immediate needs and wants, such as those occurring within the next months. goals, which identify wants and needs that occur between the other two categories. 3. Asset acquisition planning is one of the earliest financial activities you undertake in life. It involves the purchase of including tangible and financial assets, liquid assets, investment, and personal and real property. 4. Tangible assets are and are held either to consume and use or to generate a return or income as an investment. An example of a tangible asset is D-A- 5. In general, the cost and value of your tangible, personal, and real assets tend to with your age, income, and wealth, all other things remaining constant. The value of your financial and liquid assets, on the other hand, tends to be a function of economic conditions and your investment returns. 6. Liability acquisition planning addresses how you are going to pay for your asset purchases using liabilities, or money. 7. The of liabilities is that, by law, the money be repaid 8. In general, you borrowing needs tend to as you acquire additional and/or more expensive assets. 9. Insurance planning, on the other hand, provides a way of your financial risks and your income and assets. Improper insurance planning can be expensive and can lead to unprotected possessions. 10. One of the first savings accumulations recommended by financial advisors is fund, which should contain months' worth of income. 11. The purpose of most long-term savings activity is to accumulate funds for 12. In general, it is desirable to the retum earned on your invested funds (assuming you are not significantly increasing your risk), to earn interest on you funds, and to the fees associated with the accounts. 13. Tax planning involves evaluating your current and projected earnings and developing tutamine that nan lant Andles Utaw limbil.. 13. Tax planning involves evaluating your current and projected earnings and developing strategies that can legally and/or your tax liability 14. As it is currently written, the U.S. tax code recognizes several types of taxable income, including: Active, or , income. Passive income. Portfolio, or income. Tax-deferred and/or tax-free income. 15. To achieve the best results, it is critical that you begin your retirement planning your retirement. Most Americans, however, don't start thinking about retirement until well into their The cost of this postponed planning is a substantially level of retirement income. 16. Estate planning, the second half of retirement planning, involves the method by which your will be passed on to your heirs, often by way of wills, trusts, and gifts