Financial Planning – Lake Bluff
The most prevalent misconception about financial planning is that it is centered on investing. Of course investing is a part of financial planning as you should make smart investment choices, but there's a lot more to it. Financial Planning is the process of developing strategies to help you control your financial affairs effectively and meet financial goals. It's a holistic method that helps you make better decisions by turning vague objectives into concrete strategies, giving a road map for action. Having a financial plan - and sticking with it - provides you with a true edge when it comes to planning your retirement as well as other long-term financial and life goals.
Retirement Planning/Children's Education Funds - Lake Bluff
Frequently individuals say that they are saving for retirement or saving for their children's education. They could be seen as specific goals, but they're really quite vague. Financial planning can discover the key numbers - How much do you need to save and also by when? If you aren't sure whether you will 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 offers 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 parents, financial planning will help you make better-informed choices.
Certified Financial Planner - Lake Bluff
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 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 objectives, a Certified Financial Planner will help you select among your priorities. Whatever you decide, you will have the secure feeling of knowing that a specialist has reviewed your situation and that you're doing something beneficial for your financial situation. Financial planning offers a road map with an action plan that - if implemented faithfully - will take you where you want to go in financial terms.
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 might wind up impairing the build up of wealth. For example, relying on pre-tax returns for financial decision-making instead of understanding that different types of investments are subject to differing tax rates might be damaging for your financial well-being. A Certified Financial Planner can make you understand that the type 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 hands. Many of you fail to realize the delayed tax implications on the future nest eggs. It is pre-tax returns you are concerned about and you fail to realize that there will be a drag on the ultimate amount of money you will have because of the tax liability that is waiting for you.
Influence of Financial Planning - Lake Bluff
The influence 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 middle, each of the various elements of your financial life - like buying a home, saving for retirement, planning for your children's education, owning your favorite luxury car, debt management and so on - are spokes to the wheel. Once you begin to make progress along each one of those spokes, you are going to start to gain traction overall, and you will see your ability to understand your financial goals really start to take off. Further, everyone knows 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, fret 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 lifetime and generate a long-term relationship. Then meet frequently to review the Financial Plan to make sure you're on the right track.
For more information, please don't hesitate to contact us at any time and we will be glad to help you!
