Financial Planning Company – Libertyville
The most popular misunderstanding regarding financial planning is that it is all about investing. Of course investing is a part of financial planning as you should make sensible investment decisions, but there's much more to it. Financial Planning is the process of developing strategies to help you manage your financial affairs effectively and meet financial goals. It is a holistic method that can help you make smarter decisions by turning vague objectives into concrete plans, offering a road map for action. Having a financial plan - and sticking to it - provides you with a real advantage when it comes to planning your retirement and other long-term financial and life goals.
Retirement Planning/Children's Education Funds - Libertyville
Often folks say that they're saving for retirement or saving for their children's education. They could be seen as precise goals, however they are really quite vague. Financial planning can find the key numbers - How much should you save and also by when? If you are not sure whether or not you will have enough to live on post-retirement, it can create anxiety. But when you know what you have to 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 kids or caring for aging mothers and fathers, financial planning will help you make better-informed decisions.
Certified Financial Planner - Libertyville
Many people don't have limitless resources. In such a situation, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed decisions and prudently use the limited 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 every year to achieve these objectives, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you will have the reassurance of knowing that an expert has reviewed your situation and that you're doing something beneficial for your financial situation. Financial planning provides a map with an action plan that - if followed faithfully - will take you where you want to go financially.
Missing the big picture is a problem seen too often with clients. If you are centered on the near-term rather than on much wider long-term implications, then you may end up impairing the build up of wealth. For instance, relying on pre-tax returns for financial decision-making as opposed to understanding that different types of investments are subject to differing tax rates might be damaging for your financial wellness. A Certified Financial Planner will make you realize that the kind of investment you choose affects the after-tax return. Keep in mind, it's not about the returns an investment produces; it's about the net income that comes in your hand. Lots of you fail to realize the delayed tax implications on the potential nest eggs. It's pre-tax returns you're worried about and you fail to realize that there will be a drag on the ultimate amount of money you'll have because of the tax liability which is awaiting you.
Impact of Financial Planning - Libertyville
The influence of sound financial planning on overall financial well-being is multifold and multidimensional. Actually if you think of your financial life as a flywheel, with financial planning as the heart, each one of the various components of your financial life - like buying a house, saving for retirement, planning for children's education, owning your dream car, debt management etc - are spokes to the wheel. Once you start to make progress along each one of those spokes, you will start to gain traction overall, and you'll see your ability to recognize your financial goals really start to take off. Further, we all know that one of the greatest causes of stress and conflict in relationships is cash. Individuals and families who have planned out a financial path appreciate greater well-being, fret less, sleep much better and have vibrant relationships.
Financial Planning is a life process. Preferably, you need to meet a financial planner as soon as possible in your lifetime and establish a long-term relationship. Then meet frequently to review the Financial Plan to make sure you're on track.
For more info, please feel free to contact us at any time and we'll be happy to help you!
