Financial Planning – Carol Stream, Illinois
The most popular misunderstanding regarding financial planning is that it is all about investing. Of course investing is a part of financial planning as one should make wise investment choices, but there is much more to it. Financial Planning is the method of creating strategies to help you control your financial affairs efficiently and meet financial goals. It's a holistic process that helps you make better decisions by turning vague goals into concrete plans, supplying a road map for action. Having a financial plan - and sticking with it - provides you with a real advantage when it comes to planning your retirement as well as other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Carol Stream, Illinois
Often individuals say that they're saving for retirement or saving for their little one's schooling. They sound like distinct goals, but they're really quite vague. Financial planning can discover the important numbers - How much should you save and 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 have to 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 home, having children or caring for aging parents, financial planning will help you make better-informed choices.
Certified Financial Planner - Carol Stream, Illinois
The majority of 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 educated decisions and prudently use the restricted resources for attaining 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 year to achieve these goals, a Certified Financial Planner will help you select among your priorities. Whatever you decide, you'll 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 offers a 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 a problem seen too frequently with clients. If you're centered on the near-term rather than on broader long-term implications, then you could end up impairing the build up of wealth. For instance, counting on pre-tax returns for financial decision-making rather than understanding that various kinds of investments are susceptible to differing tax rates could be damaging for your financial well-being. A Certified Financial Planner can make you realize that the kind of investment you choose affects the after-tax return. Don't forget, it's not about the returns an investment generates; it's about the net income that comes in your hands. A lot of you do not realize the delayed tax implications on the future nest eggs. It's pre-tax returns you are worried about and you do not 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 - Carol Stream, Illinois
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 middle, each of the various elements of your financial life - like buying a home, saving for retirement, planning for your children's education, owning your dream car, debt management etc - are spokes to the wheel. Once you begin to make progress along every one of those spokes, you'll begin to gain traction all round, and you will 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've planned out a financial path appreciate greater well-being, fret less, sleep much better and have strong relationships.
Financial Planning is a life process. Ideally, you should meet a financial planner as soon as possible in your lifetime and set up a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you're on the right track.
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