Financial planning as a strategic tool

Article Abstract:

Strategic financial planning is a very complex process consisting of five stages. The first two stages in the corporate planning are target setting, in which the goals of the corporation are elucidated and the levels of the goals to be achieved are set, and gap analysis, which entails a forecast of future performance based on extant strategies and the identification of differences between goals and forecasted performance. The third stage is a strategic environmental and internal appraisal in which the competitive advantages the corporation enjoys are determined. In the fourth stage, strategy is formulated and options are selected by a process that generates strategic options and evaluates them against goals and internal appraisals. In the last stage, the strategy is implemented by creating action plans and budgets, a process that includes control and monitoring.

Methods, Planning, Management, Corporations, Strategic planning (Business)

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Which Mortgage? Endowment Isn't Always the Best

Article Abstract:

Two major options are available in buying a house - a repayment mortgage and an endowment mortgage. More people have been turning to the endowment mortgage. The introduction in the United Kingdom of the MIRAS (mortgage interest relief at source) in April 1983 made repayment mortgages easier to compare to endowment. The change under MIRAS is that monthly payments are calculated using the net of tax interest rate. If interest rates were to fall, endowment would have the advantage. But if interest rates were to rise, repayment mortgages would be more beneficial. An endowment policy is free of all tax and is more beneficial to the higher rate taxpayer. A young first-time buyer would probably benefit most from repayment mortgage as he gains equity sooner and will probably get more.

Evaluation, Mortgages

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