Financial Planning – Niles
The most prevalent misconception regarding financial planning is that it is centered on investing. Of course investing is a part of financial planning as you should make smart investment decisions, but there's a whole lot more to it. Financial Planning is the process of creating strategies to help you manage your financial affairs effectively and meet financial targets. It's a holistic method that helps you make smarter decisions by turning vague goals into concrete strategies, offering a guide for action. Having a financial plan - and sticking with it - provides you with a real edge with regards to planning your retirement and other long-term financial and life goals.
Retirement Planning/Children's Education Funds - Niles
Often folks say that they are saving for retirement or saving for their child's education. They seem like specific goals, but they're really quite vague. Financial planning can find the important numbers - How much should you save and by when? If you're not sure whether or not you will have enough to live on post-retirement, it can create stress and anxiety. But when you know what you should do and that you are following the financial plan, it provides peace of mind and confidence. When your situation changes from single to married, from renting to buying a house, having children or caring for aging mothers and fathers, financial planning will help you make better-informed decisions.
Certified Financial Planners - Niles
Most people do not have limitless resources. In such a scenario, Financial Planning through a Certified Financial Planner can offer advice on how best to make knowledgeable decisions and prudently use the limited resources for attaining financial freedom. Say, if you have identified retirement and funding your child's education as your financial targets, but you only have Rs. 1,000 extra each and every year to achieve these goals, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you will have the reassurance of knowing that a specialist has reviewed your needs and that you're doing something positive for your financial predicament. Financial planning supplies a map with an action plan that - if implemented faithfully - will take you where you want to go in financial terms.
Missing the big picture is an issue seen all too often with clients. If you are focused on the near-term rather than on much wider long-term implications, then you may end up impairing the build up of wealth. For example, counting on pre-tax returns for financial decision-making instead of understanding that different types of investments are susceptible to differing tax rates might be damaging for your financial well-being. A Certified Financial Planner will make you realize that the type of investment you choose impacts the after-tax return. Keep in mind, it's not about the returns an investment generates; it's about the net income that comes in your hands. A lot of you fail to realize the delayed tax implications on the future nest eggs. It is pre-tax returns you are concerned about and you fail to realize that there will be a drag on the ultimate amount of cash you will have because of the tax liability that is awaiting you.
Impact of Financial Planning - Niles
The impact of sound financial planning on over-all 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 of the different aspects of your financial life - like purchasing a home, saving for retirement, planning for children's education, owning your dream car, debt management and so on - are spokes on the wheel. Once you start to make progress along every one of those spokes, you'll start to gain traction all round, and you will see your ability to recognize your financial targets 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've planned out a financial path appreciate greater well-being, fret less, sleep much better and have strong relationships.
Financial Planning is really a life process. Essentially, you need to meet a financial planner as early as possible in your life and begin a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you're on the right track.
For more info, please don't hesitate to contact us at any time and we will be happy to help you!
