Financial Planning – Itasca
The most prevalent misconception about financial planning is that it is all about investing. Needless to say 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 take care of your financial affairs efficiently and meet financial targets. It's a holistic method that helps you make better decisions by turning vague objectives into concrete plans, giving a road map for action. Having a financial plan - and sticking with it - gives you a real edge with regards to planning your retirement as well as other long-term financial and life goals.
Financial Planning For the Future - Itasca
Frequently people say that they are saving for retirement or saving for their child's schooling. They sound like specific goals, but they're really quite vague. Financial planning can discover the key numbers - How much should you save and by when? If you're not sure whether or not you'll have enough to live on post-retirement, it can create stress and anxiety. But once you know what you have to do and that you are following the financial plan, it provides peace of mind and assurance. Whenever your situation changes from single to married, from renting to buying a house, having children or caring for aging parents, financial planning will help you make better-informed decisions.
Certified Financial Planner - Itasca
Many people don't have unlimited resources. In such a scenario, Financial Planning through a Certified Financial Planner can provide advice on how best to make knowledgeable decisions 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 each and every 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 professional has reviewed your circumstances and that you are doing something beneficial for your financial situation. Financial planning offers a road 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 all too often with clients. If you're focused on the near-term rather than on much wider long-term implications, then you could wind up impairing the build up of wealth. For example, depending on pre-tax returns for financial decision-making as opposed to knowing that different types of investments are subject to differing tax rates might be damaging for your financial health. A Certified Financial Planner will make you realize that the kind of investment you choose impacts the after-tax return. Don't forget, it's not about the returns an investment generates; it comes down to the net income that comes in your hand. Many of you do not realize the delayed tax implications on the potential nest eggs. It's pre-tax returns you are worried about and you do not realize that there will be a drag on the ultimate amount of money you'll have because of the tax liability that's waiting for you.
Impact of Financial Planning - Itasca
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 one of the various aspects of your financial life - like buying a house, saving for retirement, planning for children's education, owning your dream car, debt management and so forth - are spokes on the wheel. Once you begin to make progress along each one of those spokes, you'll 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 families who've planned out a financial path appreciate greater well-being, worry less, sleep better and have strong relationships.
Financial Planning can be a life process. Preferably, you need to meet a financial planner as early as possible in your life 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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