Assess And Explain The Relationship Between Investing And Personal Financial Planning Case Study

Answer the following critical-thinking questions:
1. Assess and explain the relationship between investing and personal financial planning.

Briefly discuss the relationship between investing and personal financial planning. Step-by-step solution Investing continuously in shares, bonds, securities like stocks, and mutual funds or options is considered as financial planning. The process of placing money in some medium such as stocks or bonds with the expectation of receiving some future rewards is financial planning. Investing is commonly to take a long term perspective and is viewed as a process of purchasing securities wherein stability of value and level of return on somewhat predictable. In investing there are two limitations like first speculating, means short term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain. Second on is risk expand that means requires higher expected returns as compensation for taking on greater risk.

Personal financial planning means the citizens will invest as like accumulate the funds over time which is where investment planning and the act of investing coming or enters into the personal financial planning
The investors are optimistic about stocks growth and make huge investments on the outlook of the growing economy and favorable investment environment. The investors are enthusiastic about the growth and make newer investments that are they are bullish about their investments and believe that the investments shall go up. A collection of such thinking among investors give rise to the bull markets because now everybody is excited about growth and want to cash in by making newer investments this results in making the markets more and more bullish. Sometimes the bull markets can give rise to bubbles and the bubbles when burst can give rise to financial