Financial Planning Company – Aurora
The most common misunderstanding regarding financial planning is that it is all about investing. Of course investing is a part of financial planning as one should make smart investment choices, but there is much more to it. Financial Planning is the method of creating strategies to help you manage your financial affairs effectively and meet financial targets. It's a holistic method that can help you make better decisions by turning vague objectives into concrete strategies, providing a map for action. Having a financial plan - and sticking with it - provides you with a true advantage with regards to planning your retirement as well as other long-term financial and life goals.
Financial Planning For the Future - Aurora
Often people say that they are saving for retirement or saving for their child's education. They could be seen as precise goals, however they are really quite vague. Financial planning can discover the key 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 once you know what you should do and that you are following the financial plan, it offers peace of mind and assurance. When your situation changes from single to married, from renting to buying a house, having children or caring for aging parents, financial planning will help you make better-informed choices.
Certified Financial Planner - Aurora
Many people do not have unlimited resources. In such a situation, Financial Planning through a Certified Financial Planner can provide advice on how best to make educated choices and prudently use the restricted resources for reaching financial freedom. Say, if you have identified retirement and funding your son or daughter's education as your financial targets, but you only have Rs. 1,000 extra each and every year to achieve these objectives, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you will have the peace of mind of knowing that an expert has reviewed your circumstances and that you are doing something positive for your financial predicament. Financial planning supplies a road map with an action plan that - if followed faithfully - 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 are devoted to the near-term rather than on broader long-term implications, then you may wind up impairing the build up of wealth. For instance, counting on pre-tax returns for financial decision-making as opposed to understanding that different types of investments are susceptible to differing tax rates could be damaging for your financial health. A Certified Financial Planner will make you understand that the type of investment you choose impacts the after-tax return. Don't forget, it isn't about the returns an investment produces; it's about the net income that comes in your hand. A lot of you do not realize the delayed tax implications on the potential nest eggs. It's pre-tax returns you are concerned about and you do not realize that there will be a drag on the ultimate amount of cash you'll have because of the tax liability that's waiting for you.
Impact of Financial Planning - Aurora
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 different components of your financial life - like buying a house, saving for retirement, planning for your children's education, owning your ideal car, debt management etc - are spokes on the wheel. Once you start to make progress along each one of those spokes, you'll begin to gain traction overall, and you will see your ability to realize your financial targets really start to take off. Additionally, we all know that one of the greatest sources of stress and conflict in relationships is money. Individuals and families who have mapped out a financial path appreciate greater well-being, fret less, sleep better and have vibrant relationships.
Financial Planning is a life process. Essentially, you need to meet a financial planner as early as possible in your life and establish a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you are on the right track.
For more details, please don't hesitate to contact us at any time and we will be happy to help you!
