Financial Planning – Lyons
The most prevalent misunderstanding about financial planning is that it is centered on investing. Of course investing is a part of financial planning as you should make wise investment choices, but there's much more to it. Financial Planning is the process of creating strategies to help you manage your financial affairs efficiently and meet financial goals. It's a holistic method that helps you make better decisions by turning vague targets into concrete strategies, giving a map for action. Having a financial plan - and sticking with it - provides you with a true edge with regards to planning your retirement and also other long-term financial and life goals.
Financial Planning For the Future - Lyons
Often individuals say that they're saving for retirement or saving for their children's schooling. They sound like distinct goals, but they're really quite vague. Financial planning can find the key numbers - How much do you need to save and by when? If you aren't 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 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 mothers and fathers, financial planning can help you make better-informed choices.
Certified Financial Planner - Lyons
Most people do not have limitless resources. In such a scenario, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed choices and prudently use the restricted 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 each and every year to achieve these targets, 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 professional has reviewed your situation and that you are doing something beneficial for your financial predicament. Financial planning supplies 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 all too often with clients. If you're centered on the near-term rather than on broader long-term implications, then you may wind up impairing the accumulation of wealth. For example, relying on pre-tax returns for financial decision-making as opposed to understanding that different types of investments are subject to differing tax rates could be harmful for your financial health. A Certified Financial Planner can make you realize that the type of investment you choose impacts the after-tax return. Bear in mind, it's not about the returns an investment generates; it's about the net income that comes in your hands. A lot of you do not realize the delayed tax implications on the future 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 that's awaiting you.
Influence of Financial Planning - Lyons
The impact of sound financial planning on overall financial well-being is multifold and multidimensional. Actually if you think of your financial life as a flywheel, with financial planning as the center, each one of the various components of your financial life - like purchasing a house, saving for retirement, planning for children's education, owning your dream car, debt management etc - are spokes on the wheel. Once you begin to make progress along every one of those spokes, you are going to begin to gain traction overall, and you'll see your ability to recognize your financial goals really start to take off. Further, we all know that one of the greatest causes of stress and conflict in relationships is cash. Individuals and families who have planned out a financial path enjoy greater well-being, worry less, sleep better and have vibrant relationships.
Financial Planning is really 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 on a regular basis to review the Financial Plan to make sure you are on the right track.
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