Invest and Insure
Two of the primary aspects of financial planning are invest and insure. Grow your financial assets and protect what you have. People often ask which is most important, and depending on financial professional with whom you are talking, you probably will get a different answer. Investment professionals usually feel that growing your assets is the most important. Many people would agree. Increasing your cash flow and net worth are primary goals in financial planning. Insurance professionals would likely say that protecting your hard-earned assets is the most important. After all, what good does it do to increase your net worth if you cannot keep it?
In reality, both are about equally important. Increasing cash flow and net worth are significant goals. Protecting your assets and your family are equally important. In fact, traditional financial planning would suggest that building an adequate amount of savings and having a basic insurance portfolio are equally important. Both are key components of building your financial foundation. Once you have the basics covered, you can begin to branch out and build on your financial foundation.
There are two sections covering these two important financial planning areas: