Financial Planning and Its Vehicles - A Review

In the recent turmoil of events in the US of America world is concerned of the financial planning prospects. Most of the investors are migrating to less volatile sectors to minimize the impact of the short fall. The question of the moment is whether it will be advice able to invest now? The recent turmoil is expected to last long and is spreading like a tsunami and has already caused enough destruction in the Asian and European markets.

Financial Planning and Its Vehicles - A Review
By [http://ezinearticles.com/?expert=James_Gordon]James Gordon

In the recent turmoil of events in the US of America world is concerned of the financial planning prospects. Most of the investors are migrating to less volatile sectors to minimize the impact of the short fall. The question of the moment is whether it will be advice able to invest now? The recent turmoil is expected to last long and is spreading like a tsunami and has already caused enough destruction in Asian and European markets. The still optimistic markets like India is expected to see a downfall. The recovery and healing will take and the world business and finance sector has to adjust with the changing investment patterns. The possibility of a compromised bailout package has given few hopes to the Markets. So what are the stable investment vehicles to consider for a decent return over investment.

Savings account
Most of you will be having a savings account with you are quite comfortable with the options provided. There are different types of savings accounts. Some accounts allow you to keep your account with zero balance for an unlimited period of time. These accounts however pay relatively low interest rates. If you are having a high rate of fund flow its always preferable to choose one such account. Investors often receive a certificate issued by the bank as a proof of investment. Its however mandatory to keep the funds in the bank for the chosen period. Breaking this will invite some sort of penalty depending on the banks policy. Though the returns are low its far too flexible than any other forms of deposit.

Money Market
Money market accounts are current accounts. These accounts have more restrictions when compared to the the savings account. The restrictions are in the form of the higher balance requirements and limited money withdrawal within fixed time frames

Fixed Accounts or Certificate of Accounts
These kind of accounts offer you interests in slabs. You have to choose the time frame before investing in these accounts. These accounts are normally considered as a planning asset account. People depositing in these accounts have some objective which they foresee for the future. Since the returns are fixed its guaranteed that after maturity period of the account you obtain the desired amount with considerable ease.

Savings Bonds
These are bonds issued by Governments and the corporates for the citizens of the country. The Government bonds have much stability and offer higher interest rates than that of bank deposits. In another way it is a kind of fund collection for the Governments. The part of the fund collected from the individuals are invested in public sector companies and part of these are used for the administration of the company. This fund as a whole is utilized in a good way to ensure maximum returns to the investors.

James Gordon writes management articles for a number of websites including [http://www.vijyoti.com]Vijyoti School of Communications and corporate learning.

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