Financial institutions deal with the management and functions performed by financial firms. These firms range from credit unions, savings and loans, and banks all the way to the Federal Reserve. Investments is an area that cuts across the other fields of finance. Businesses need to invest their excess cash, banks need to invest deposits and manage trusts, and insurance firms need to invest premium payments. Investments analyzes alternative opportunities and evaluates the expected returns and the risks associated with them.
Insurance deals with risk identification, measurement, and handling for businesses and individuals.
It involves life, property, and health risk management, as well as mandatory employee benefits. Personal financial planning deals with the development of a comprehensive financial plan in the combined areas of investment, tax, insurance, retirement and estate planning.