Financial Planning Company – Harwood Heights
The most popular misconception about financial planning is that it is centered on investing. Of course investing is a part of financial planning as one should make smart investment choices, but there's a whole lot more to it. Financial Planning is the process of creating strategies to help you take care of your financial affairs effectively and meet financial targets. It is a holistic process that helps you make better decisions by turning vague targets into concrete strategies, providing a guide for action. Having a financial plan - and sticking with it - will give you a real edge when it comes to planning your retirement along with other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Harwood Heights
Often people say that they're saving for retirement or saving for their children's schooling. They could be seen as precise goals, however they are really quite vague. Financial planning can find the important numbers - How much do you need to save and by when? If you are not sure whether you will 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 provides peace of mind and confidence. When your situation changes from single to married, from renting to buying a home, having children or caring for aging mothers and fathers, financial planning will help you make better-informed choices.
Certified Financial Planner - Harwood Heights
Many people do not have limitless resources. In such a situation, Financial Planning through a Certified Financial Planner can offer advice on how best to make knowledgeable options and prudently use the restricted resources for reaching 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 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 an expert has reviewed your circumstances and that you're doing something beneficial for your financial situation. Financial planning provides a map with an action plan that - if followed faithfully - will take you where you want to go financially.
Missing the big picture is an issue seen all too often with clients. If you are centered on the near-term rather than on much wider long-term implications, then you could end up impairing the accumulation of wealth. For example, relying on pre-tax returns for financial decision-making as opposed to knowing that different types of investments are subject to differing tax rates could be harmful for your financial well-being. A Certified Financial Planner can make you realize that the kind of investment you choose impacts the after-tax return. Remember, it isn't about the returns an investment creates; it's about the net income that comes in your hand. Many of you do not realize the delayed tax implications on the future nest eggs. It's pre-tax returns you are concerned with 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.
Influence of Financial Planning - Harwood Heights
The impact of sound financial planning on over-all financial well-being is multifold and also multidimensional. In fact if you think of your financial life as a flywheel, with financial planning as the middle, each of the various components of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your ideal car, debt management etc - are spokes on the wheel. Once you start to make progress along each one of those spokes, you are going to begin to gain traction all round, and you will see your ability to understand your financial targets really start to take off. Further, everyone knows that one of the greatest sources of stress and conflict in relationships is money. Individuals and also families who have planned out a financial path appreciate greater well-being, fret less, sleep much better and have vibrant relationships.
Financial Planning is a life process. Preferably, you should meet a financial planner as soon as possible in your lifetime and set up a long-term relationship. Then meet regularly to review the Financial Plan to make sure you're on track.
For more details, please don't hesitate to contact us at any time and we'll be glad to help you!
