Financial Services - Personal Financial Planning Essay

Financial Services - individual(prenominal) Financial Planning - Essay ExampleThe importance of financial planning, which is not just comprised of saving is too discussed. This paper aims to give some recommendations in order to gain the bonuss of having a financial plan without organism penalized by the brass through its policies.It may be true that the state punishes those who save. Accordingly, there can be three most identifiable presidency policies that discourage savings taxation on savings and neat low interest evaluate in risk-free financial instruments and social security and other government programs that substitute savingsthe major argument of the above statement.Taxation on savings and capital. One government policy is to make provision for taxes. Taxes and government spending are part of the fiscal policy. Because taxes are include in savings account for every interest received by an investor or depositor, the taxes serve as a disincentive to save, at least in the risk-free securities in the market.Low interest rates less incentive for delaying consumption due to inflation. Low interest rates in banks, which sometimes progeny in very low real rate after deducting inflation, give consumers very little incentive to save. Due to the time value of money, consumers might as well save as their dollars are expense more for the current, than delay consumption because the reward is not huge enough for them to be compensated.Social security measure and other government programs substitute savings. With more government programs that are available to the public that substitute the piece of savings, the public does not find any other reason to save behind such asylum net. The prevalence of these programs that are part of the policies of the government, seem to be enough for the public which does not give superfluous incentive to save.While people are discouraged by the government to save through its miscellaneous policies that penalizes the savers, the futures uncertainty is the major motivation behind all personal