Financial Planning – Arlington Heights
The most popular misunderstanding about financial planning is that it is all about investing. Of course investing is a part of financial planning as you should make sensible investment choices, but there's a whole lot more to it. Financial Planning is the method of developing strategies to help you manage your financial affairs effectively and meet financial goals. It is a holistic process that can help you make better decisions by turning vague objectives into concrete strategies, providing a guide for action. Having a financial plan - and sticking with it - gives you a true edge when it comes to planning your retirement as well as other long-term financial and life goals.
Retirement Planning and Funding Your Child's Education - Arlington Heights
Frequently people say that they're saving for retirement or saving for their children's schooling. They seem like distinct goals, however they are really quite vague. Financial planning can find the important numbers - How much must you save and also by when? If you aren't sure whether or not 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 house, having children or caring for aging mothers and fathers, financial planning will help you make better-informed choices.
Certified Financial Planners - Arlington Heights
Many people do not have limitless resources. In such a situation, Financial Planning through a Certified Financial Planner can provide advice on how best to make informed options and prudently use the restricted resources for attaining financial freedom. Say, if you have identified retirement and funding your child'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 choose among your priorities. Whatever you decide, you will have the peace of mind of knowing that an expert has reviewed your situation and that you're doing something beneficial for your financial predicament. Financial planning provides a road map with an action plan that - if followed diligently - will take you where you want to go in financial terms.
Missing the big picture is a problem seen too frequently with clients. If you're focused on the near-term rather than on broader long-term implications, then you could wind up impairing the accumulation of wealth. For example, depending on pre-tax returns for financial decision-making rather than understanding that various kinds of investments are subject to differing tax rates might be harmful for your financial well-being. A Certified Financial Planner will make you understand 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. Lots of you do not realize the delayed tax implications on the future nest eggs. It's pre-tax returns you're 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 which is waiting for you.
Impact of Financial Planning - Arlington Heights
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 center, each of the different aspects of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your dream car, debt management and so forth - are spokes to the wheel. Once you start to make progress along every one of those spokes, you'll start to gain traction all round, and you will see your ability to recognize your financial goals really start to take off. Additionally, we all know that one of the greatest sources of stress and conflict in relationships is cash. Individuals and families who have planned out a financial path appreciate greater well-being, fret less, sleep much better and have vibrant relationships.
Financial Planning is really a life process. Preferably, you need to meet a financial planner as soon as possible in your lifetime and establish a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you're on the right track.
For more information, please do not hesitate to contact us at any time and we'll be happy to help you!
