Introduction
Financial planning remains a fundamental function among the investors in coming up with a method of using the finances presently and in the future. This applies to both the rich and the poor because the amount of money available requires adequate planning to avoid misuse. Technology in the world has developed leading to innovations to simplify planning other monetary functions such as computations. This has been facilitated through the introduction of software that only requires input data to produce a model or a presentation of the expected output. This paper reflects on the use of money tree software as a tool in financial planning.
Lessons
Innovations and inventions are the mothers of advancements in life. As a result, there are many investors fully investing in technology to discover software to capture raw data to produce a model or a plan followed by the investors to make wise decisions. In this regard, there can be a change in decision depending on the output whereas the investor can decide to maintain the current plans. However, there is a different category of people in which financial planning is critical. The employed and self-employed must have good financial planning so that at a later age there is no financial crisis.
Employed people at a given age will retire or be retrenched from their duties. This marks the end of their source of income hence there must be earlier plans to receive pensions and other benefits associated with the older age. This is done from deductions earlier done from the incomes and savings made by employees. Therefore, financial planning remains very fundamental to avoid hard old age.
Knowledge and techniques to have good planning should be given a high priority to enhance savings and other financial planning. Human resources must be mobilized and trained in technology to ensure new software and technologies are produced to handle this task. The software may vary on the use and running of the computer programs. Some are very difficult to run whereas others are very simple and friendly to the users.
Money tree software offered a very friendly platform that a student can use to make some financial decisions. It required only making some applicable input data that are likely to be realistic in life. Students should be focused on life, keeping in mind that old age sometimes comes with tough times. As revealed, the income increases gradually until the retirement age. At this age, the beneficiary ought to have made some deductions that will be useful after retirement. The financial planning after retirement revealed that the money-received increases after retirement hence becoming the alternative source of income. On the other hand, the expenses also decline after the retirement age hence there should be adequate plans in advance to save.
Most important, financial planning requires different parameters as keyed in the software to give an outcome that reveals the probable plans in life. These include assets, income, age, and growth among others. The relationship between these parameters will determine the rates at which the benefits will be generated at later ages. Hence, decisions at the initial stages are fundamental and the use of money tree software has eased the process.
Conclusion
The use of advanced technology has eased the decision-making process in many fields of life. This is significant in financial planning as well as other areas in which inventions or innovations are critical. The advantage is that the workload is reduced to enhance efficiency.