Financial Planning – Eola
The most prevalent misunderstanding about financial planning is that it is all about investing. Of course investing is a part of financial planning as you should make intelligent investment decisions, but there is a lot more to it. Financial Planning is the method of creating strategies to help you control your financial affairs efficiently and meet financial targets. It's a holistic process that can help you make better decisions by turning vague objectives into concrete plans, supplying a road map for action. Having a financial plan - and sticking with it - gives you a true edge with regards to planning your retirement as well as other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Eola
Often individuals say that they are saving for retirement or saving for their child's education. They could be seen as specific goals, but they're really quite vague. Financial planning can find the key numbers - How much should you save and also by when? If you are not sure whether or not you will have enough to live on post-retirement, it can create stress and anxiety. But when you know what you have to do and that you are following the financial plan, it gives you peace of mind and assurance. Whenever 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 decisions.
Certified Financial Planner - Eola
Most people don't have limitless resources. In such a situation, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed options and prudently use the limited resources for attaining financial freedom. Say, if you have identified retirement and funding your child's education as your financial targets, but you only have Rs. 1,000 extra every year to achieve these objectives, a Certified Financial Planner will help you select 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 provides a map with an action plan that - if followed faithfully - will take you where you want to go fiscally.
Missing the big picture is an issue seen too frequently with clients. If you're devoted to the near-term rather than on broader long-term implications, then you might wind up impairing the accumulation of wealth. For example, counting on pre-tax returns for financial decision-making instead of understanding that various kinds of investments are susceptible to differing tax rates could be damaging for your financial health. A Certified Financial Planner can make you understand 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 generates; it's about the net income that comes in your hand. Many of you fail to realize the delayed tax implications on the potential nest eggs. It's 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 waiting for you.
Influence of Financial Planning - Eola
The influence 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 heart, each one of the various 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 every one of those spokes, you are going to start to gain traction overall, and you will see your ability to realize your financial targets really begin to take off. Further, we all know that one of the greatest causes of stress and conflict in relationships is cash. Individuals and families who've planned out a financial path enjoy greater well-being, worry less, sleep much better and have vibrant relationships.
Financial Planning is a life process. Ideally, you need to meet a financial planner as soon as possible in your life and begin 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 feel free to contact us at any time and we'll be glad to help you!
