Financial Planning – Hines
The most typical misunderstanding about financial planning is that it is centered on investing. Needless to say investing is a part of financial planning as one should make sensible investment choices, but there's so much more to it. Financial Planning is the process of creating strategies to help you control your financial affairs effectively and meet financial goals. It is a holistic method that can help you make smarter decisions by turning vague goals into concrete plans, offering a map for action. Having a financial plan - and sticking to it - will give you a real advantage when it comes to planning your retirement and also other long-term financial and life goals.
Financial Planning For the Future - Hines
Frequently people say that they are saving for retirement or saving for their children's schooling. They sound like specific goals, however they are really quite vague. Financial planning can find the key numbers - How much do you need to save and also by when? If you're not sure whether or not you'll have enough to live on post-retirement, it can create anxiety. But once you know what you should do and that you are following the financial plan, it gives you peace of mind and self-assurance. When your situation changes from single to married, from renting to buying a home, having children or caring for aging parents, financial planning can help you make better-informed choices.
Certified Financial Planner - Hines
Most people don't have unlimited resources. In such a scenario, Financial Planning through a Certified Financial Planner can provide advice on how best to make knowledgeable options and prudently use the restricted resources for reaching financial freedom. Say, if you have identified retirement and funding your child's education as your financial goals, but you only have Rs. 1,000 extra each and every year to achieve these goals, a Certified Financial Planner can help you choose among your priorities. Whatever you decide, you'll have the reassurance of knowing that a professional has reviewed your situation and that you're doing something positive for your financial predicament. Financial planning offers a map with an action plan that - if followed diligently - will take you where you want to go in financial terms.
Missing the big picture is an issue seen too frequently with clients. If you're devoted to the near-term rather than on much wider long-term implications, then you could end up impairing the accumulation of wealth. For instance, depending on pre-tax returns for financial decision-making rather than knowing that different types of investments are subject to differing tax rates might be harmful for your financial wellness. A Certified Financial Planner can make you realize that the type of investment you choose impacts the after-tax return. Bear in mind, it's not about the returns an investment produces; it's about the net income that comes in your hands. A lot of you fail to realize the delayed tax implications on the foreseeable future nest eggs. It's pre-tax returns you are worried about and you fail to realize that there will be a drag on the ultimate amount of money you will have because of the tax liability that is awaiting you.
Impact of Financial Planning - Hines
The impact of sound financial planning on over-all financial well-being is multifold and multidimensional. In fact if you think of your financial life as a flywheel, with financial planning as the center, each of the different aspects of your financial life - like purchasing a home, saving for retirement, planning for children's education, owning your favorite luxury car, debt management and so on - are spokes to the wheel. Once you start to make progress along every one of those spokes, you are going to start to gain traction overall, and you'll see your ability to realize your financial goals really start to take off. Further, everyone knows that one of the greatest causes of stress and conflict in relationships is money. Individuals and families who have planned out a financial path appreciate greater well-being, worry less, sleep much better and have strong relationships.
Financial Planning is a life process. Ideally, you should meet a financial planner as early as possible in your life and set up a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you're on track.
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