Financial Planning – Eola
The most common misconception about financial planning is that it is all about investing. Needless to say investing is a part of financial planning as one should make intelligent investment choices, but there's much 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 method that helps you make smarter decisions by turning vague targets into concrete strategies, giving a map for action. Having a financial plan - and sticking with it - gives you a true advantage with regards to planning your retirement along with other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Eola
Often individuals say that they're saving for retirement or saving for their child's education. They sound like distinct goals, but they're really quite vague. Financial planning can find the important numbers - How much do you need to save and by when? If you're 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 should do and that you are following the financial plan, it offers peace of mind and assurance. Whenever 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 - Eola
The majority of people do not have unlimited resources. In such a situation, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed options and prudently use the restricted resources for reaching 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 targets, a Certified Financial Planner will help you choose among your priorities. Whatever you decide, you'll have the secure feeling of knowing that an expert 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 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 are centered on the near-term rather than on broader long-term implications, then you could end up impairing the accumulation of wealth. For instance, depending on pre-tax returns for financial decision-making rather than knowing that different types of investments are susceptible to differing tax rates might be harmful for your financial well-being. A Certified Financial Planner can make you realize that the kind of investment you choose affects the after-tax return. Keep in mind, it isn't about the returns an investment creates; it comes down to the net income that comes in your hand. Many of you do not realize the delayed tax implications on the future nest eggs. It is pre-tax returns you're worried about and you do not realize that there will be a drag on the ultimate amount of cash you'll have because of the tax liability that is waiting for you.
Influence of Financial Planning - Eola
The influence 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 one of the various elements of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your ideal car, debt management etc - are spokes on 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. Additionally, everyone knows that one of the greatest sources of stress and conflict in relationships is cash. Individuals and also families who've planned out a financial path appreciate greater well-being, worry less, sleep better and have vibrant relationships.
Financial Planning can be a life process. Essentially, you need to meet a financial planner as early as possible in your life and establish 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'll be happy to help you!
