Last Updated: April 27, 2023
Matt Crabtree is a publisher at CompareBanks. He specialises in personal finance and is passionate about helping consumers make informed decisions about their money.
Bonds ETFs Investment Mutual Funds Retirement Robo Adviser Stocks
When you’re just getting started, investments can be incredibly overwhelming. There are a lot of different asset classes, and some of them are more risky than others.
It’s a good idea to start small and simple, and then you can work your way up to more advanced techniques if that is something you are interested in doing.
For example, a lot of people trade in options and forex, but these are not necessarily where you should start as a beginner.
Instead, focus on the more common types of investments, learn how the market works, and then build on that knowledge and skills as you go. There is a lot to know, and while many tools provide you data and research, you still need to understand the basic concepts before you dive in.
We’ve put together some of the best investments for beginners. If you’re just getting started, consider working with these first.
Best Investments for Beginners
- Mutual Funds
- Retirement Plans
- Individual Stocks
- Robo Adviser Accounts
- Bonds or CDs
1. Mutual Funds
Mutual funds are a really great place to start. Instead of choosing one stock, or not being able to afford many shares of a single stock, you can let the fund make those decisions. When you invest in mutual funds, you do so based on your goals.
With funds, you can choose something that is high yielding, something that is designed for growth, or another category.
Here are some examples of different classes of mutual funds.
- Index mutual funds
- Equity mutual funds
- Target date mutual funds
- Commodity mutual funds
- Asset allocation mutual funds
- Environmental, social, and governance mutual funds
Each of these different classes operates in a different way, or will have different types of holdings within them. A mutual fund is made up of multiple holdings. This could include stocks, indexes, commodities, and other mutual funds. There are other investments that could also be found in a mutual fund.
This may seem overwhelming, but a single mutual fund can diversify your holdings in a way that no single stock could possibly do. That being said, you still may want to be mindful of creating a strategy, and choosing mutual funds that will help work towards your goals.
As a beginner, you may want to consider something like index mutual funds, or even target date mutual funds, especially if you are setting up a long-term investment. For example, a target date mutual fund is designed to grow for several years when you may need it, and then shift towards income closer to maturity. It’s a popular choice for retirement accounts.
You can do a lot of research and find more about the most common popular funds, and even the types of assets that they hold within them.
ETFs are slightly similar to mutual funds, but they only hold exchange traded funds. Just like mutual funds are a large group of funds, ETFs are a large group of holdings as well. Ultimately, ETF managers watch the market, sift through the data, and then place stocks and put them into the fund.
If you want to be invested in a variety of funds, or don’t want to have to come up with the thousands of dollars to invest in the top stocks, this is a great way to get a little bit of the share. For example, AutoZone shares were trading for £2,013.75 at the close of market 12/9/22, and many people can’t afford one, much less multiple shares.
We certainly can’t promise that an ETF will have this specific stock, but you get the idea, right? These funds invest in a wide array of stocks and them pop them together into a fund. You purchase the ETF, and you instantly have a variety of stocks in your holdings within that ETF.
You can find ETFs through several different companies, and they all have different holdings. They also are designed for different goals or strategies. You can find high-yield options, interest income options, growth options, and more in the ETF industry.
A single ETF investment gives you relatively broad exposure, without having to purchase all of those individual stocks on your own. Before you purchase just any ETF, take the time to look at it, check out the reputation, the history, and even get familiar with the holdings it has.
While the assets within vary and give you more exposure, it does not necessarily mean that it is a diverse holding.
An ETF with a specific focus will be heavily invested in that area, so you may want to hold multiple ETFs in different areas to be more diverse.
3. Retirement Plans
If you’re just getting started in investing, you should be working to plan for your future. Setting up a retirement plan is a great way to get into the market, play around some with investing, and work towards that day when you might retire. The earlier that you are able to start investing for retirement, the more likely you are to be ready when the time comes.
You can tap into retirement calculators to try to figure out how much you need, but the industry recommendation is to invest approximately 10-15% of your annual income. That means if you make £100,000 in a year, you should be investing anywhere from £10,000 to £15,000 for your retirement.
This can be hard to do, especially when you’re just scraping by between your paydays right now.
But if you are able to defer to a retirement plan through your employer, this is ideal. Otherwise, you may want to set up a small IRA and just make small contributions to it out of each payday that you have.
An employer retirement plan is advantageous because the money that goes into the plan is typically pulled out before your earnings are taxed. This might help reduce your tax liability, but it also makes that amount you defer less noticeable on your paycheck.
In a retirement plan, a traditional IRA, or a Roth IRA, you can choose investments suitable to your age and how close you are to retirement. At a bank, you can place your IRAs into a CD-type product.
Or, you can work with an online broker platform (or an adviser) and set up your own in the investment world. Here, you can choose what to place in your retirement account. If you are 30 years from retirement, consider focusing on growth for now. You can transition to income and reduced risk as you get closer to retirement.
4. Individual Stocks
As a beginner, you may want to start with some individual stocks to invest in. You can do this several different ways, but we recommend finding a low-cost online broker to use as a beginner.
Many online brokers have very low minimum deposits, as well as helpful tools for beginners to use as they start playing the market. You will want to be mindful and pay attention to what you are investing in. Don’t just haphazardly choose things because you see good prices, or you heard something that one time about them.
Do your due diligence, pay attention to forums, look at some research, and make informed investments into stocks. Do you plan to stay invested into the stock for a long time, or do you hope to play the market as you go?
Your approach will be solely up to you, but have a good handle on your intentions before you jump in. Investing in individual stocks can sometimes feel like a roller coaster. These can often be volatile, and they will move up and down based on what the market or that business is doing.
Before you invest in stocks, make sure you can handle the ups and downs without anxiety and stress.
If you feel like watching those highs and lows is going to be bad for your mental health, you may want to consider a different choice for investing to start with.
You can easily diversify your portfolio, and be invested into the market, without purchasing individual stocks.
5. Robo Adviser Accounts
If you want to invest, but simply don’t really know where to start, you can always go with a robo adviser account instead. Robo adviser accounts allow you to get automated assistance and management within your investment portfolio.
These types of accounts work differently from various providers. Some of them will be fully managed, while others will just offer advice and then allow you to make changes at will.
You may never have invested before, and this could be a good way for you to watch and learn.
Investing doesn’t mean that you have to figure it out on your own. It also doesn’t require you to manage investments on your own. A robo adviser account is geared towards your risk profile and the goals that you enter when you open an account.
This is a great option for someone who really wants to invest, has a little bit of money (or even a lot) to put into the market, but has no idea what they want to do. That’s why it’s great for beginners. You don’t have to know what you’re doing; you just have to be willing to let the managers help you out.
You don’t have to figure out how the market works, read all the research, and then try to decide what to invest in. The robo adviser does all of that for you. Instead, you put the money in, sit back, and let this app do it all for you.
One of the nice things about robo advisers is they typically have fairly low fees, and you can get into them without having to build up a huge savings first. There are plenty of these apps out there to consider if this feels like the right fit for you.
6. Bonds or CDs
Let’s be honest. Not everyone has a high tolerance for risk and the stock market can often pose challenging risks. It’s notorious for those ups and downs. Even things like mutual funds and ETFs can experience those ups and downs, although it’s not typically as extreme as some stocks.
It’s a volatile place, and it can be incredibly nerve-wracking. Instead of investing in these things that make you nervous, or just aren’t the right fit for you, you can go with a more conversative approach. It’s totally up to your preferences!
A conservative option for some beginner investors could be to invest in bonds or CDs. These are similarly designed instruments, although there are some slight differences. In most cases, both of these investments are designed for income. However, you can reinvest and take advantage of the compounding interest as well.
If you’re specifically wanting to invest, you can look for bonds in the market, as well as brokered CDs.
These do have some risk, but there are more secure than most stocks and other funds. These assets bear interest rates, and will have a specific maturity date as well.
If you choose to invest in a bond or CD, you need to be sure that you can stay in until that maturity date. Otherwise, you may have to pay a penalty for cashing out early. The rates are more steady and secure in these investments, because the majority of them have a specified interest rate.
The risk of a bond or CD is the underlying asset and whether it goes bad, so choose wisely based on quality. You could also invest in a bank CD if you prefer. One more thing to note here. Many times, the minimum investment is £500 or more, so this is something to be aware of.
Tips to Prepare for Investing as a Beginner
Now that you know some investment places to start, let’s consider other details that might be valuable for a beginner to know.
First things first. There is no way to invest in the market and have absolutely no risk. This is something everyone should know. You can certainly do research and try to make informed decisions with less risk, but there is never a guarantee. Investing is meant to be long-term, although some people do play the market in short-term capacities.
Check out some of these tips to prepare you for your investing efforts.
Learn Your Risk Tolerance
One thing that you will want to figure out before you invest is just what your risk tolerance is. When you work with an adviser or investment professional, they are required to ask you questions to gauge this before they make any recommendations.
When you set up a new online broker account, you will also probably have to answer some questions for the same reason. If you have a low risk tolerance, you will want to stick to investments that are known for lower risk. This means you probably won’t be trading in forex, futures, options, and other similar assets.
If the thought of a stock plummeting in your portfolio makes you want to vomit, you might want to stay away from stocks. Every investor will have their own risk tolerance. Some people love the thrill of the game, while others want to make a little income without having severe anxiety while doing it.
What Are Your Financial Goals?
As you start investing, what are your goals for doing so? Are you just interested in playing the market a little bit and seeing what happens? Maybe your plans are to set up a retirement account and watch it grow.
Most investors have their own goals, which define the strategy behind the investment approach that they use. You can have both long-term and short-term goals that help you choose when and how to invest.
These goals should define the things you do or do not do, to some extent.
What are you looking to achieve with your new investment account? Keep your focus on these goals, and don’t let opinions or other strategies sway you. It’s also ok to have multiple accounts and have a different goal with each of them. However, as a beginner, start with one simple goal and then build from there.
Do You Want Help?
You might be a beginner investor, but that doesn’t mean you have to figure it out alone. You can create your own accounts, where you are 100% in charge. But you don’t have to.
Aside from self-management, you can choose partially managed and fully managed accounts too. You can also choose accounts where you get advisement, but you still make your own decisions in the end.
Robo adviser accounts are one we mentioned above as a great investment for beginners. You could also be fully managed with an individual rather than AI if you prefer. Or, find yourself somewhere in between where you get the advice, and then say yes or no.
Of course, you’re welcome to go it alone also. Most online brokers have a multitude of helps, tips, research, and data to help you be successful in the trading industry.
How Much Do You Need to Invest?
This number is going to vary from platform to platform. However, there are plenty of online brokers that have minimum deposits of £0. Technically speaking, you need enough money to purchase a share of something. That being said, some investments like ETFs and mutual funds can also be purchased in partial shares.
There are brokers that allow you to invest small amounts and still be in the market.
This is a good way to build up your portfolio. However, if you want something specific, you need enough money to purchase that specific share.
For example, Apple shares are currently trading around £120. So, if you want 5 shares, you need approximately £620 to make that happen. Or, you can choose a fund or ETF that holds Apple within it, and probably spend a bit less to get invested.
Don’t Forget Taxes
Something that many investors aren’t familiar with is taxes. But you should know that when you invest in the market, you could potentially have a tax liability from doing so. If you have capital gains, earned interest, or anything else, you will potentially have to pay taxes on those amounts.
Of course, if you take a loss, you might also be able to claim that as a deduction to you. While you don’t have to know all the ins and outs of tax law regarding investments, you should at least be aware that you may have to pay taxes from investment income and gains.
Don’t Invest More than You Can Afford to Lose
Finally, our last tip for beginning investors is to not over invest. Remember that nothing in the investment world is guaranteed. You might make some money, but there is a chance you could lose it all.
You choose your investments based on goals and risks, but you may come out empty-handed. When you are investing, be sure that you already have an emergency fund and nest egg set aside for those unexpected circumstances.
Then, you can invest and not have to worry as much about losing money. When you invest, make sure that you can afford the loss if it happens to you. That’s why we recommend investing for the long-term, or making sure your emergency fund is already covered.
Does this mean you should just skip investing all together? No, that’s not what we’re trying to say. But don’t invest money that you might need for your bills and immediate expenses.
Your living expenses and day-to-day budgets simply don’t belong in the stock market.
Everyone has to start somewhere. As a beginning investor, you have a lot of decisions to make. But remember that you don’t have to jump all in all at once. Just because you know someone who is day trading, doesn’t mean that’s the right fit for you.
Be sure to take the time to educate yourself, watch trends, and pay attention to the market. Invest in things that are suitable for your goals, as well as your risk tolerance. As long as you invest for your purpose, you should do ok.
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6 Best Investments For Beginners (+ In-Depth Analysis)? ›
1 – Never lose money. Let's kick it off with some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money.What are the six 6 criteria for choosing an investment? ›
- Dollar-cost averaging.
- Risk tolerance levels.
- Portfolio diversification.
- Asset allocation.
1 – Never lose money. Let's kick it off with some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money.What type of investments have the highest potential returns? ›
- High-yield savings accounts. Online savings accounts and cash management accounts provide higher rates of return than you'll get in a traditional bank savings or checking account. ...
- Certificates of deposit. ...
- Money market funds. ...
- Government bonds. ...
- Corporate bonds. ...
- Mutual funds. ...
- Index funds. ...
- Exchange-traded funds.
- A 401(k) or other employer retirement plan. ...
- A robo-advisor. ...
- Target-date mutual funds. ...
- Index funds. ...
- Exchange-traded funds (ETFs) ...
- Investment apps.
- If you can't afford to invest yet, don't. It's true that starting to invest early can give your investments more time to grow over the long term. ...
- Set your investment expectations. ...
- Understand your investment. ...
- Diversify. ...
- Take a long-term view. ...
- Keep on top of your investments.
Before loaning anyone your hard-earned money, remember the 'Four Cs' of credit: character, collateral, covenants and, the most important, capacity.What is the 80% investment rule? ›
The 80/20 rule can be effectively used to guard against risk when individuals put 80% of their money into safer investments, like savings bonds and CDs, and the remaining 20% into riskier growth stocks.What is the 70% rule investing? ›
Basically, the rule says real estate investors should pay no more than 70% of a property's after-repair value (ARV) minus the cost of the repairs necessary to renovate the home. The ARV of a property is the amount a home could sell for after flippers renovate it.What is the 25% investment rule? ›
The 25x Rule is a way to estimate how much money you need to save for retirement. It works by estimating the annual retirement income you expect to provide from your own savings and multiplying that number by 25.
What is the #1 safest investment? ›
What are the safest types of investments? U.S. Treasury securities, money market mutual funds and high-yield savings accounts are considered by most experts to be the safest types of investments available.What is the safest investment with highest return? ›
High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.How do you guarantee 10 percent return on investment? ›
- Invest in stock for the long haul. ...
- Invest in stocks for the short term. ...
- Real estate. ...
- Investing in fine art. ...
- Starting your own business. ...
- Investing in wine. ...
- Peer-to-peer lending. ...
- Invest in REITs.
- Subprime Mortgages. ...
- Annuities. ...
- Penny Stocks. ...
- High-Yield Bonds. ...
- Private Placements. ...
- Traditional Savings Accounts at Major Banks. ...
- The Investment Your Neighbor Just Doubled His Money On. ...
- The Lottery.
Here are the best low-risk investments in May 2023:
Series I savings bonds. Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS.
For example, certificates of deposit (CDs), money market accounts, municipal bonds and Treasury Inflation-Protected Securities (TIPS) are among the safest types of investments.What are the 3 R's of investing? ›
The Three Rs of Investments: Research, Risk, and Reward.What are the 3 C's of investing? ›
As active fixed income managers, we are focused on three C's – curve management, (yield) carry, and the consumer-led recovery.What is the 3 6 9 rule investing? ›
Those general saving targets are often called the “3-6-9 rule”: savings of 3, 6, or 9 months of take-home pay. Here are some guidelines to help you decide what total savings fits your needs.What is the 4 rule portfolio? ›
The 4% rule is easy to follow. In the first year of retirement, you can withdraw up to 4% of your portfolio's value. If you have $1 million saved for retirement, for example, you could spend $40,000 in the first year of retirement following the 4% rule.
What is core four portfolio? ›
The Rick Ferri Core Four Portfolio is a Very High Risk portfolio and can be implemented with 4 ETFs. It's exposed for 80% on the Stock Market. In the last 30 Years, the Rick Ferri Core Four Portfolio obtained a 7.90% compound annual return, with a 12.08% standard deviation.What are the major four 4 assets of an investors portfolio? ›
There are four main asset classes – cash, fixed income, equities, and property – and it's likely your portfolio covers all four areas even if you're not familiar with the term.What is the rule of 42 in investment? ›
The so-called Rule of 42 is one example of a philosophy that focuses on a large distribution of holdings, calling for a portfolio to include at least 42 choices while owning only a small amount of most of those choices.What is the 110 rule investing? ›
As a rule of thumb, you can subtract your age from 110 or 100 to find the percentage of your portfolio that should be invested in equities; the rest should be in bonds. Using 110 will lead to a more aggressive portfolio; 100 will skew more conservative.What is the 100 year rule investing? ›
According to this principle, individuals should hold a percentage of stocks equal to 100 minus their age. So, for a typical 60-year-old, 40% of the portfolio should be equities. The rest would comprise high-grade bonds, government debt, and other relatively safe assets.What is the Buffett rule investing 70 30? ›
A 70/30 portfolio signifies that within your investments, 70 percent are allocated to stocks, with the remaining 30 percent invested in fixed-income instruments like bonds.What is the 3 5 7 rule of investing? ›
The strategy is very simple: count how many days, hours, or bars a run-up or a sell-off has transpired. Then on the third, fifth, or seventh bar, look for a bounce in the opposite direction. Too easy? Perhaps, but it's uncanny how often it happens.What is the investment 50% rule? ›
Like many rules of real estate investing, the 50 percent rule isn't always accurate, but it can be a helpful way to estimate expenses for rental property. To use it, an investor takes the property's gross rent and multiplies it by 50 percent, providing the estimated monthly operating expenses.What is the Buffett rule of investing? ›
Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”What is 114 rule of investment? ›
The formula to determine the Rule of 114 is, to divide 114 by the interest rate equal to the number of years it will take to triple your money. For instance, if you deploy Rs 1,00,000 into an investment with a 12% annual expected return, then the time to triple is 114/12, or 9.5 years.
What is the $1 000 a month rule? ›
The math behind the $1000-a-month rule is simple. If you take 5% of a $240,000 retirement nest egg each year, that works out to $12,000/year, which, divided into 12 months, gives you $1000 each month.What is the safest way to invest $1 million dollars? ›
Some options for relatively safe investments include high-quality bonds, certificates of deposit (CDs), and money market accounts. These investments are generally less risky than stocks, but also have lower potential returns.How can I double my money without risk? ›
- Take Advantage of 401(k) Matching.
- Invest in Value and Growth Stocks.
- Increase Your Contributions.
- Consider Alternative Investments.
- Be Patient.
Most of our experts agree that one of the safest places to keep your money is in a savings account insured by the Federal Deposit Insurance Corporation (FDIC). “High-yield savings accounts are an excellent option for those looking to keep their retirement savings safe.Which is the riskiest of all investments? ›
The highest risk investments are cryptocurrency, individual stocks, private companies, peer-to-peer lending, hedge funds and private equity funds. High-risk, volatile investments may bring high rewards, or they may bring high loss.What has the highest ROI return on investment? ›
- The U.S. stock market is considered to offer the highest investment returns over time.
- Higher returns, however, come with higher risk.
- Stock prices typically are more volatile than bond prices.
- Stock prices over shorter time periods are more volatile than stock prices over longer time periods.
A good return on investment is generally considered to be about 7% per year, based on the average historic return of the S&P 500 index, and adjusting for inflation. But of course what one investor considers a good return might not be ideal for someone else.Can you get 20% return on investment? ›
A 20% return is possible, but it's a pretty significant return, so you either need to take risks on volatile investments or spend more time invested in safer investments.Is 12% return on investment realistic? ›
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns.Is 20% return on investment good? ›
There is no set percentage. Some agencies might be satisfied with a 5-percent ROI, while others might be on the lookout for a higher number like 20 percent for it to be considered good ROI.
What are toxic investments? ›
What Are Toxic Assets? Toxic assets are investments that are difficult or impossible to sell at any price because the demand for them has collapsed. There are no willing buyers for toxic assets because they are widely perceived as a guaranteed way to lose money.What are the common mistakes in investment? ›
- Buying high and selling low. ...
- Trading too much and too often. ...
- Paying too much in fees and commissions. ...
- Focusing too much on taxes. ...
- Expecting too much or using someone else's expectations. ...
- Not having clear investment goals. ...
- Failing to diversify enough. ...
- Focusing on the wrong kind of performance.
- Brookdale Senior Living Inc. With a market cap of $3.13 billion, Brookdale Senior Living Inc. ...
- Dish Network Corp. ...
- Meritage Homes. ...
- Perfect World Co. ...
- Public Storage. ...
The average 70-year-old would most likely benefit from investing in Treasury securities, dividend-paying stocks, and annuities. All of these options offer relatively low risk.Can I live off interest on a million dollars? ›
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.What is the downside of I bonds? ›
Key Points. Pros: I bonds come with a high interest rate during inflationary periods, they're low-risk, and they help protect against inflation. Cons: Rates are variable, there's a lockup period and early withdrawal penalty, and there's a limit to how much you can invest.What is the most safest asset? ›
Some of the most common types of safe assets historically include real estate property, cash, Treasury bills, money market funds, and U.S. Treasuries mutual funds. The safest assets are known as risk-free assets, such as sovereign debt instruments issued by governments of developed countries.What is the least risky asset class? ›
Cash is the least risky asset class and has the lowest potential return.Which of the three investment options is the least risky? ›
Mutual fund: This is the least risky of the three investment options. It is highly liquid compared to buying a franchise or real estate.What is Rule 6 in investing? ›
Rule 6. Know what you own, and know why you own it. — Peter Lynch. Peter Lynch is known as one of the world's most successful business investors.
What are the criteria of selection investment? ›
Within financial theory and practice, there are used five main criteria for selecting investment projects: the net present value (NPV) criterion, the internal rate of return (IRR) criterion, the return term (RT) criterion, the profitability ratio (PR) criterion and the supplementary return (SR) criterion.What is step 6 of the steps for effective investment planning? ›
- 1) Identify your Financial Situation. ...
- 2) Determine Financial Goals. ...
- 3) Identify Alternatives for Investment. ...
- 4) Evaluate Alternatives. ...
- 5) Put Together a Financial Plan and Implement. ...
- 6) Review, Re-evaluate and Monitor The Plan.
- Return on Investment (ROI) ROI is often considered to be the holy grail of all metrics when it comes to assembling one's portfolio. ...
- Cost. ...
- Time to Goals. ...
- Tax Considerations. ...
Net Present Value, Internal Rate of Return, and Discounted Payback Period are three popular economic criteria for evaluating whether or not to invest in a capital asset.What is the rule of 7 in investing? ›
At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same time period, you could expect to double your money in about 12 years (72 divided by 6).What is the rule of 7 investment? ›
Divide 72 by your average expected annual return
If instead your average expected annual return was a more modest 7% (accounting for the typical annual inflation of around 3%), dividing 72 by 7 would result in 10.3, meaning it would take slightly over a decade for your money to double under those conditions.
Factors that have been identified by investors include: growth vs. value; market capitalization; credit rating; and stock price volatility - among several others.How do you analyze stocks before buying? ›
- Reviewing Financial Statements: Share market analysis is first and foremost a numbers game. ...
- Industry Analysis: ...
- Researching Stocks: ...
- Price Targets:
This article will discuss the six essential types of financial planning that you should be able to provide, including cash flow planning, insurance planning, retirement planning, tax planning, investment planning, and estate planning.What are the 6 components of a financial plan? ›
Major key elements are Cash-flow management, Investment management, Tax planning, Insurance assessment, Retirement planning, and Estate planning.
What are the 6 aspects of financial planning? ›
The financial planning areas include financial management, insurance and risk management, investment planning, retirement planning, tax planning, estate planning and legal aspects.