What Are the Two Functions of a Financial Plan

question 123

Essay

What are the two functions of a financial plan?

---

Definitions:

Taxable Income

The amount of an individual's or business's income used to determine how much tax they owe to the government, after deductions and exemptions.

Peter Drucker

A renowned management consultant, educator, and author, considered one of the founding figures of modern business management.

Individual Retirement Accounts (IRAs)

Tax-advantaged investing tools that individuals use to earmark funds for retirement savings.

Tax-exempt Contributions

Donations made to qualifying organizations that can be deducted from taxable income because the recipient is exempt from taxes.