Financial Planning – Harvey
The most common misunderstanding regarding financial planning is that it is all about investing. Of course investing is a part of financial planning as one should make wise investment decisions, but there's so 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 is a holistic process that helps you make better decisions by turning vague goals into concrete strategies, supplying a map for action. Having a financial plan - and sticking with it - provides you with a real edge with regards to planning your retirement along with other long-term financial and life goals.
Retirement Planning and Funding Your Child's Education - Harvey
Often individuals say that they are saving for retirement or saving for their children's schooling. They seem like precise goals, but they're 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 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 self-assurance. When your situation changes from single to married, from renting to buying a home, having kids or caring for aging mothers and fathers, financial planning can help you make better-informed decisions.
Certified Financial Planners - Harvey
Most 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 educated choices 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 each year to achieve these goals, a Certified Financial Planner can 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 faithfully - will take you where you want to go in financial terms.
Missing the big picture is an issue 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 example, depending on pre-tax returns for financial decision-making rather than understanding that different types of investments are subject to differing tax rates might be harmful for your financial health. A Certified Financial Planner can make you understand that the type of investment you choose impacts the after-tax return. Remember, it's not about the returns an investment creates; it's about the net income that comes in your hand. Lots of you do not realize the delayed tax implications on the potential nest eggs. It's pre-tax returns you are 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 which is awaiting you.
Impact of Financial Planning - Harvey
The impact of sound financial planning on over-all financial well-being is multifold and also multidimensional. Actually if you think of your financial life as a flywheel, with financial planning as the center, each of the different components of your financial life - like buying a home, saving for retirement, planning for your children's education, owning your dream car, debt management and so on - are spokes to the wheel. Once you begin to make progress along each one of those spokes, you are going to start to gain traction overall, and you'll see your ability to understand your financial goals really start to take off. Additionally, everyone knows that one of the greatest causes of stress and conflict in relationships is cash. Individuals and also families who've planned out a financial path appreciate greater well-being, fret less, sleep much 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 establish a long-term relationship. Then meet on a regular basis to review the Financial Plan to make sure you are on the right track.
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