Financial Planning Company – Blue Island, IL
The most common misconception regarding financial planning is that it is all about investing. Of course investing is a part of financial planning as one should make sensible investment choices, but there's much 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's a holistic method that can help you make smarter decisions by turning vague goals into concrete plans, giving a guide for action. Having a financial plan - and sticking with it - will give you a true advantage with regards to planning your retirement as well as other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Blue Island, IL
Frequently people say that they are saving for retirement or saving for their child's schooling. They seem like specific goals, but they're really quite vague. Financial planning can discover the key numbers - How much must you save and also 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 offers 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 choices.
Certified Financial Planner - Blue Island, IL
Most people don't have limitless resources. In such a scenario, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed options 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 select among your priorities. Whatever you decide, you'll have the secure feeling of knowing that a professional has reviewed your situation and that you're doing something positive for your financial predicament. Financial planning provides a map with an action plan that - if followed faithfully - 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 are centered on the near-term rather than on broader long-term implications, then you could end up impairing the build up of wealth. For instance, counting on pre-tax returns for financial decision-making rather than understanding that various kinds of investments are susceptible to differing tax rates could be harmful for your financial health. A Certified Financial Planner will make you understand that the kind of investment you choose has an effect on the after-tax return. Keep in mind, it's not 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 potential nest eggs. It's pre-tax returns you are concerned about and you do not 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.
Impact of Financial Planning - Blue Island, IL
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 middle, each of the different components of your financial life - like purchasing a home, saving for retirement, planning for your children's education, owning your ideal 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 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 have mapped out a financial path enjoy greater well-being, worry less, sleep better and have strong relationships.
Financial Planning can be a life process. Preferably, you should meet a financial planner as soon 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 info, please do not hesitate to contact us at any time and we will be glad to help you!
