Financial Planning Company – Chicago Ridge
The most prevalent misunderstanding about financial planning is that it is all about investing. Needless to say investing is a part of financial planning as you should make smart investment decisions, but there is much more to it. Financial Planning is the method of developing strategies to help you manage your financial affairs efficiently and meet financial goals. It is a holistic process that can help you make smarter decisions by turning vague objectives into concrete strategies, offering a road map for action. Having a financial plan - and sticking to it - provides you with a true advantage with regards to planning your retirement and also other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Chicago Ridge
Frequently folks say that they are saving for retirement or saving for their child's education. They seem like precise goals, however they are really quite vague. Financial planning can discover the important numbers - How much should you save and by when? If you're not sure whether you'll 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 home, having kids or caring for aging mothers and fathers, financial planning will help you make better-informed decisions.
Certified Financial Planners - Chicago Ridge
The majority of people do not have limitless resources. In such a situation, Financial Planning through a Certified Financial Planner can provide advice on how best to make knowledgeable choices 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 each year to achieve these objectives, a Certified Financial Planner will help you select among your priorities. Whatever you decide, you'll have the peace of mind of knowing that a professional has reviewed your needs and that you are doing something positive for your financial situation. 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 a problem seen all too often with clients. If you are focused on the near-term rather than on much wider long-term implications, then you could end up impairing the build up of wealth. For example, depending on pre-tax returns for financial decision-making instead of understanding that different types of investments are subject to differing tax rates could be damaging for your financial well-being. A Certified Financial Planner will make you realize that the type of investment you choose has an effect on the after-tax return. Keep in mind, it's not about the returns an investment creates; it's about the net income that comes in your hands. Lots of you fail to realize the delayed tax implications on the future nest eggs. It is pre-tax returns you're concerned with 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 which is waiting for you.
Impact of Financial Planning - Chicago Ridge
The impact of sound financial planning on overall financial well-being is multifold and also multidimensional. Actually 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 forth - are spokes to the wheel. Once you start to make progress along every one of those spokes, you'll start to gain traction overall, and you'll see your ability to understand your financial goals really start to take off. Further, everyone knows that one of the greatest sources of stress and conflict in relationships is cash. Individuals and also families who have mapped out a financial path appreciate greater well-being, worry less, sleep much better and have strong relationships.
Financial Planning can be a life process. Essentially, you should meet a financial planner as early as possible in your lifetime and establish a long-term relationship. Then meet frequently to review the Financial Plan to make sure you are on the right track.
For more information, please do not hesitate to contact us at any time and we will be glad to help you!
