Financial Planning – Kenilworth, Illinois
The most prevalent misunderstanding about financial planning is that it is all about investing. Needless to say investing is a part of financial planning as one should make sensible investment decisions, but there's much more to it. Financial Planning is the process of developing strategies to help you take care of your financial affairs effectively and meet financial goals. It's a holistic process that can help you make better decisions by turning vague objectives into concrete plans, providing a map for action. Having a financial plan - and sticking with it - provides you with a real edge with regards to planning your retirement as well as other long-term financial and life goals.
Saving For Retirement and Your Child's Education - Kenilworth, Illinois
Frequently individuals say that they are saving for retirement or saving for their children's education. They could be seen as distinct goals, however they are really quite vague. Financial planning can find the key numbers - How much should 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 anxiety. But once you know what you have to do and that you are following the financial plan, it offers peace of mind and confidence. Whenever your situation changes from single to married, from renting to buying a home, having kids or caring for aging parents, financial planning can help you make better-informed decisions.
Certified Financial Planner - Kenilworth, Illinois
The majority of people don't have unlimited resources. In such a scenario, Financial Planning through a Certified Financial Planner can provide advice on how best to make educated choices and prudently use the limited resources for reaching 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 each year to achieve these objectives, a Certified Financial Planner can help you select among your priorities. Whatever you decide, you'll have the peace of mind of knowing that a specialist has reviewed your needs and that you're doing something positive for your financial situation. Financial planning offers a road map with an action plan that - if followed faithfully - will take you where you want to go fiscally.
Missing the big picture is a problem seen 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 example, relying on pre-tax returns for financial decision-making as opposed to understanding that various kinds of investments are susceptible to differing tax rates might be damaging for your financial wellness. A Certified Financial Planner can make you understand that the kind of investment you choose has an effect on the after-tax return. Bear 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 fail to realize the delayed tax implications on the potential nest eggs. It's pre-tax returns you are concerned about and you fail to realize that there will be a drag on the ultimate amount of cash you will have because of the tax liability that is awaiting you.
Impact of Financial Planning - Kenilworth, Illinois
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 elements of your financial life - like buying a house, saving for retirement, planning for children's education, owning your favorite luxury car, debt management etc - are spokes to the wheel. Once you begin to make progress along each one of those spokes, you'll begin to gain traction overall, and you'll see your ability to understand 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 families who have planned out a financial path enjoy greater well-being, fret less, sleep much better and have strong relationships.
Financial Planning is a life process. Preferably, you should meet a financial planner as early as possible in your life and set up a long-term relationship. Then meet regularly to review the Financial Plan to make sure you're on the right track.
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