Financial Planning – Deerfield
The most prevalent misconception 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 choices, but there is a whole lot more to it. Financial Planning is the method of developing strategies to help you control your financial affairs effectively and meet financial goals. It is a holistic process that helps you make smarter decisions by turning vague targets into concrete strategies, giving a map for action. Having a financial plan - and sticking to it - gives you a real edge with regards to planning your retirement along with other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Deerfield
Often people say that they're saving for retirement or saving for their little one's education. They seem like specific goals, but they're really quite vague. Financial planning can find the key numbers - How much must 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 anxiety. But once 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 parents, financial planning will help you make better-informed choices.
Certified Financial Planners - Deerfield
Many 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 decisions and prudently use the restricted resources for attaining financial freedom. Say, if you have identified retirement and funding your son or daughter's education as your financial goals, but you only have Rs. 1,000 extra each year to achieve these targets, a Certified Financial Planner will help you select among your priorities. Whatever you decide, you will 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 road map with an action plan that - if implemented faithfully - will take you where you want to go fiscally.
Missing the big picture is a problem seen all too often with clients. If you are devoted to the near-term rather than on broader long-term implications, then you could wind up impairing the build up of wealth. For instance, counting on pre-tax returns for financial decision-making as opposed to understanding that various kinds of investments are susceptible to differing tax rates might be damaging for your financial health. A Certified Financial Planner will make you realize that the type of investment you choose impacts the after-tax return. Bear in mind, it isn't about the returns an investment generates; it comes down to 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're 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 - Deerfield
The impact 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 of the different components of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your favorite luxury car, debt management etc - are spokes on the wheel. Once you begin to make progress along every one of those spokes, you are going to begin to gain traction all round, and you'll see your ability to realize your financial goals really start to take off. Additionally, we all know that one of the greatest sources 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 better and have strong relationships.
Financial Planning is really 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 are on track.
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