If one of the biggest challenges at the beginning of the new year is to improve your personal financial prospectus for portfolio growth, there are few basic things you should know about preparing an investment plan.

Whether you are beginning to plan for retirement or interested in learning to trade Forex or securities, the decision to advance your knowledge and proficiency at financial management is an important step for increasing liquidity.

The potential that can be derived from laying a proper foundation for financial security has never been better. Increase the number of opportunities for adding to your finance. Here are some key methods of leveraging more cash flow, and adding to your financial position.

1. Get Advice from a Financial Planner

Number one on the list for those interested in extracting value from investment instruments, a Financial Advisor is important if you are looking to boost the value of your portfolio.

A Certified Financial Planner (CFP) will guide you through the process of financial assessment, and offer invaluable advice about building capacity into your financial prospectus. By seeking advice from an experience financial advisor, you can increase the liquidity of your portfolio.

Learn how to invest in securities, or transfer value to safe haven assets for tax-free exemption. Financial advisors are experts in structuring finance according to both market and policy trends.

The potential offered in a well-balanced portfolio, will assist in generating more cash flow, as well as attain your financial goals long-term. Risk reduction sought through financial advisory is critical to maintenance of your portfolio’s financial health. Protect your finances from predatory offers, and poorly gauged investments with a professional financial advisor.

2. Equity Market

In 2014, many financial advisors are indicating that investment in equities will be a safe bet. As the U.S. Federal Reserve restructures monetary policy to taper its quantitative easing strategy that increased issuance of currency coinciding with a period of bond debt investment, the general trend in investment will be market focused.

With some risk still on the horizon, there will be less focus on initial public offering (IPO) investment in the primary markets, and more on secondary market offerings.

Equity contracts consisting of financial products such as mutual funds, allow investors to reap the benefits of exposure, yet without the higher risk assigned to stock contracts. Systematic Investment Plan (SIP) programs are a good resource for adding to your long-term financial goals with mutual fund or other equity assets.

3. Contingency Planning

Building a contingency fund of up to six months will serve to protect your personal finances, insurance premium payments and equity mutual fund investments during unemployment or a critical cash flow shortage.

Maintaining a contingency fund ensures that you can meet debt instalments owed. Invest your contingency fund in liquid and short-term assets. Designate this fund exclusively for emergency use.

4. Limit Revolving Credit Use

A fantastic tip that I recommend everyone to put at the top of their list is to cut out or at least cut down on your credit card use. This awesome advice article from a top financial planner Blueprint Wealth is a real eye-opener as to how much money you can easily waste by letting even a small credit card debt start to rack up.

Constraining excessive use of revolving credit by using a debit card rather than a credit card will help you to avoid derogatory marks on your credit score. Limited use of credit cards, followed by immediate payment within the standard 45 day period, establishes a responsible credit record.

5. Track Investments

Staying abreast of investment activity is critical to maintaining control of financial health. Review investments periodically, and consider transfer of asset allocation when needed. Investments will perform better when close attention is paid to benchmark indices, and other factors such as policy responses to inflation.

6. Life Insurance Policy

Purchase life insurance to cover annual income for a period of up to 10 years. Life insurance is a safe haven asset, tax-free asset that accumulates value over the course of the policy. Retirement investment is protected in a life insurance policy.

Some policies allow for an insured to extract value from a policy once premium payments are met. The indemnity amount available for end-of-life costs expenses death of an insured protects families and loved ones from falling prey at a time when they are most vulnerable.

Life insurance is a good way to avoid capital gains. Beneficiaries receive the total amount of the policy at time of death, tax-free.

7. Will Preparation

More than a distributive instrument assigning finance to beneficiaries, a will provides an overview of all assets, including real property and other finance that may not be listed in an investment portfolio. Personal assets such as coins or jewellery are listed in will documents.

With the economy on an upswing in 2014, the time is ripe to seek professional advice about how to structure your retirement, and improve your financial position this year.

About the author: Daniel Johns is an expert Financial Consultant from Perth, Western Australia. He has been working in the area for over thirty years and has seen clients through boom and recession.
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