Financial Planning Company – Des Plaines
The most popular misconception about financial planning is that it is all about investing. Of course investing is a part of financial planning as one should make sensible investment choices, but there is so much more to it. Financial Planning is the process of developing strategies to help you manage your financial affairs effectively and meet financial targets. It's a holistic process that can help you make better decisions by turning vague objectives into concrete plans, giving a guide for action. Having a financial plan - and sticking with it - gives you a true edge when it comes to planning your retirement and also other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Des Plaines
Frequently people say that they're saving for retirement or saving for their little one's education. They seem like precise goals, but they're really quite vague. Financial planning can find the key numbers - How much do you need to save and by when? If you're not sure whether you'll have enough to live on post-retirement, it can create anxiety. But when 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 Planners - Des Plaines
Many people do not have limitless resources. In such a scenario, Financial Planning through a Certified Financial Planner can provide advice on how best to make educated choices and prudently use the limited resources for attaining 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 year to achieve these objectives, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you'll have the peace of mind of knowing that a specialist has reviewed your situation and that you are doing something beneficial for your financial situation. Financial planning offers a road map with an action plan that - if followed diligently - will take you where you want to go fiscally.
Missing the big picture is a problem seen too often with clients. If you are focused on the near-term rather than on much wider long-term implications, then you may wind 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 might be harmful for your financial health. A Certified Financial Planner will make you realize that the kind of investment you choose affects the after-tax return. Don't forget, it isn't about the returns an investment generates; it's about the net income that comes in your hands. Many of you fail to realize the delayed tax implications on the potential nest eggs. It's 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'll have because of the tax liability that is awaiting you.
Influence of Financial Planning - Des Plaines
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 center, each of the various components of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your favorite luxury car, debt management and so on - 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 realize your financial targets really start to take off. Additionally, everyone knows that one of the greatest causes of stress and conflict in relationships is money. Individuals and families who have mapped out a financial path appreciate greater well-being, worry less, sleep better and have vibrant relationships.
Financial Planning can be a life process. Essentially, you should meet a financial planner as soon as possible in your lifetime and begin a long-term relationship. Then meet regularly to review the Financial Plan to make sure you are on the right track.
For more information, please feel free to contact us at any time and we'll be happy to help you!
