Financial Planning – Lisle
The most common misunderstanding about financial planning is that it is centered on investing. Of course investing is a part of financial planning as you should make sensible investment decisions, but there's a lot more to it. Financial Planning is the process of developing strategies to help you take care of your financial affairs efficiently and meet financial targets. It's a holistic process that can help you make better decisions by turning vague targets into concrete strategies, providing a guide for action. Having a financial plan - and sticking to it - gives you a real edge when it comes to planning your retirement and also other long-term financial and life goals.
Retirement Planning and Funding Your Child's Education - Lisle
Frequently people say that they're saving for retirement or saving for their child's education. They sound like specific goals, however they are 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 will 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. When your situation changes from single to married, from renting to buying a home, having kids or caring for aging parents, financial planning will help you make better-informed decisions.
Certified Financial Planner - Lisle
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 attaining financial freedom. Say, if you have identified retirement and funding your child's education as your financial targets, 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 will have the reassurance of knowing that a professional has reviewed your circumstances and that you're 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 fiscally.
Missing the big picture is a problem seen too frequently with clients. If you are focused on the near-term rather than on much wider long-term implications, then you could wind up impairing the accumulation of wealth. For instance, counting 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 harmful for your financial wellness. A Certified Financial Planner will make you understand that the kind of investment you choose impacts the after-tax return. Remember, 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're worried 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 that's awaiting you.
Influence of Financial Planning - Lisle
The impact of sound financial planning on overall 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 various components of your financial life - like purchasing a house, saving for retirement, planning for your children's education, owning your dream car, debt management etc - are spokes on the wheel. Once you start to make progress along every one of those spokes, you will start to gain traction overall, and you will see your ability to realize your financial targets really start to take off. Additionally, we all know that one of the greatest causes of stress and conflict in relationships is money. Individuals and also families who've mapped out a financial path appreciate greater well-being, fret less, sleep better and have vibrant relationships.
Financial Planning can be a life process. Essentially, you need to meet a financial planner as soon as possible in your life and begin a long-term relationship. Then meet regularly to review the Financial Plan to make sure you're on track.
For more information, please feel free to contact us at any time and we'll be happy to help you!
