Financial Planning – Berkeley
The most typical misconception regarding financial planning is that it is centered on investing. Needless to say investing is a part of financial planning as one should make sensible investment decisions, but there is a lot more to it. Financial Planning is the process of creating strategies to help you manage your financial affairs efficiently and meet financial goals. It's a holistic method that helps you make better decisions by turning vague goals into concrete plans, supplying a guide for action. Having a financial plan - and sticking to it - gives you a real advantage with regards to planning your retirement and also other long-term financial and life goals.
Retirement Planning and Funding Your Child's Education - Berkeley
Often individuals say that they're saving for retirement or saving for their children's schooling. They seem like specific goals, however they are really quite vague. Financial planning can discover the key numbers - How much should you save and also by when? If you are not sure whether you'll 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 self-assurance. 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 decisions.
Certified Financial Planners - Berkeley
Most people do not have unlimited resources. In such a situation, Financial Planning through a Certified Financial Planner can provide advice on how best to make educated choices 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 goals, but you only have Rs. 1,000 extra every year to achieve these goals, 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 provides a road map with an action plan that - if implemented diligently - 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 centered 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 instead of understanding that different types of investments are susceptible to differing tax rates could 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. Remember, it isn't about the returns an investment produces; it's about the net income that comes in your hands. A lot of you do not realize the delayed tax implications on the foreseeable future nest eggs. It's pre-tax returns you're concerned about and you do not realize that there will be a drag on the ultimate amount of cash you will have because of the tax liability that's waiting for you.
Impact of Financial Planning - Berkeley
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 heart, each of the various components of your financial life - like purchasing a house, saving for retirement, planning for your children's education, owning your favorite luxury car, debt management and so on - 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 overall, and you'll see your ability to recognize your financial goals really begin to take off. Further, we all know that one of the greatest sources of stress and conflict in relationships is cash. Individuals and also families who have planned out a financial path enjoy greater well-being, fret less, sleep better and have strong relationships.
Financial Planning is really 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 frequently to review the Financial Plan to make sure you are on track.
For more information, please do not hesitate to contact us at any time and we'll be happy to help you!
