Submitted by: Submitted by hummeltyler
Views: 10
Words: 3247
Pages: 13
Category: Business and Industry
Date Submitted: 03/07/2016 07:32 AM
Risk management is the process of identifying, assessing, and prioritizing types of risk followed by “coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events” (Hubbard, 2009). In other words, risk management is the process of mitigating and/or reducing the impact of a specific decision or event. Effectively managing risk with insurance implies you are recognizing the importance of being prepared should something truly tragic occur in life- whether it’s a car accident or your home burning to the ground.
Financial Goals and Plan
Equally important as utilizing risk management techniques is identifying and developing a financial plan that allows one to realistically achieve his/her financial goals. A financial plan can encompass a myriad of topics to include saving money for a house, funding a child’s college education, retirement planning, and estate planning. I’ve created a financial plan consisting of my short-term, intermediate-term, and long-term goals. They are as follows:
In the short-term, my financial goals consist of the following:
• Save 10% of the gross amount of each paycheck
• Cut back on discretionary spending such as dining out and small expenditures that tend to add up over time (i.e. coffee)
• Research and become more familiar with various ways of investing and saving for retirement
In the intermediate-term, my financial goals are as follows:
• Continue to save at least 10% of the gross amount of each paycheck
• Continue to keep discretionary spending in check
• Use the excess $170 per month that would have normally gone towards my car payment to either save more, or make larger payments on the one credit card that I carry a balance on.
• Explore various brokerage firms to set up an IRA in addition to the 401k I have with my current employer.
• Reduce my investment exposure to the US stock market and the US dollar
• Have my student loan paid off in 5 years...