Financial Planning – Berwyn
The most prevalent misconception regarding financial planning is that it is all about investing. Of course 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 effectively and meet financial goals. It is a holistic process that helps you make better decisions by turning vague goals into concrete strategies, giving a road map for action. Having a financial plan - and sticking to it - will give you a real advantage when it comes to planning your retirement and other long-term financial and life goals.
Financial Planning For the Future - Berwyn
Often individuals say that they're saving for retirement or saving for their children's schooling. They could be seen as distinct goals, but they're really quite vague. Financial planning can find the key numbers - How much should you save and by when? If you are 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 gives you peace of mind and confidence. Whenever 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 decisions.
Certified Financial Planner - Berwyn
Many 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 informed 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 every year to achieve these goals, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you'll have the reassurance of knowing that an expert has reviewed your circumstances and that you are doing something positive 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 a problem seen too often with clients. If you're devoted to the near-term rather than on broader long-term implications, then you might wind up impairing the accumulation of wealth. For instance, relying on pre-tax returns for financial decision-making rather than knowing that various kinds of investments are subject to differing tax rates might be damaging for your financial health. A Certified Financial Planner will make you understand that the kind of investment you choose impacts the after-tax return. Don't forget, it's not about the returns an investment produces; it's about the net income that comes in your hand. Many of you fail to realize the delayed tax implications on the foreseeable future nest eggs. It is pre-tax returns you're concerned about and you fail to realize that there will be a drag on the ultimate amount of money you'll have because of the tax liability which is awaiting you.
Influence of Financial Planning - Berwyn
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 one of the different components of your financial life - like buying a home, saving for retirement, planning for children's education, owning your favorite luxury car, debt management and so forth - are spokes on the wheel. Once you begin to make progress along every one of those spokes, you are going to begin to gain traction overall, and you will see your ability to understand your financial goals really begin to take off. Additionally, we all know that one of the greatest causes of stress and conflict in relationships is cash. Individuals and families who've mapped out a financial path enjoy greater well-being, fret less, sleep much better and have strong relationships.
Financial Planning is a life process. Essentially, you need to meet a financial planner as early as possible in your lifetime 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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