Financial Planning Company – Prospect Heights, Illinois
The most popular misconception regarding financial planning is that it is all about investing. Needless to say investing is a part of financial planning as you should make smart investment decisions, but there is so much more to it. Financial Planning is the process of developing strategies to help you manage your financial affairs efficiently and meet financial targets. It's a holistic method that helps you make smarter decisions by turning vague goals into concrete strategies, offering a guide for action. Having a financial plan - and sticking to it - gives you a real advantage with regards to planning your retirement along with other long-term financial and life goals.
Retirement Planning and Funding Your Child's Education - Prospect Heights, Illinois
Frequently individuals say that they're saving for retirement or saving for their children's schooling. They sound like precise goals, however they are really quite vague. Financial planning can find the important numbers - How much must you save and by when? If you aren't sure whether or not you will 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 provides peace of mind and confidence. When your situation changes from single to married, from renting to buying a house, having kids or caring for aging mothers and fathers, financial planning will help you make better-informed decisions.
Certified Financial Planner - Prospect Heights, Illinois
Many people don't have unlimited resources. In such a scenario, Financial Planning through a Certified Financial Planner can offer advice on how best to make informed decisions 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 targets, but you only have Rs. 1,000 extra each year to achieve these goals, a Certified Financial Planner will help you select among your priorities. Whatever you decide, you will 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 provides a road map with an action plan that - if implemented diligently - will take you where you want to go financially.
Missing the big picture is an issue seen all 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 build up of wealth. For example, counting on pre-tax returns for financial decision-making as opposed to understanding that different types of investments are susceptible to differing tax rates could be damaging for your financial health. A Certified Financial Planner will make you understand that the type of investment you choose affects the after-tax return. Bear in mind, it's not about the returns an investment creates; it's about the net income that comes in your hands. Many of you do not realize the delayed tax implications on the future nest eggs. It is pre-tax returns you are concerned 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 awaiting you.
Impact of Financial Planning - Prospect Heights, Illinois
The influence of sound financial planning on over-all financial well-being is multifold and multidimensional. In fact if you think of your financial life as a flywheel, with financial planning as the middle, each one of the various components of your financial life - like purchasing a house, saving for retirement, planning for your children's education, owning your favorite luxury car, debt management and so forth - are spokes to the wheel. Once you begin to make progress along each one of those spokes, you will start to gain traction all round, and you'll see your ability to recognize your financial targets really begin to take off. Further, we all know that one of the greatest sources of stress and conflict in relationships is money. Individuals and families who have mapped out a financial path enjoy greater well-being, worry less, sleep better and have strong relationships.
Financial Planning can be a life process. Ideally, you need to meet a financial planner as early as possible in your lifetime and begin a long-term relationship. Then meet regularly to review the Financial Plan to make sure you're on track.
For more details, please don't hesitate to contact us at any time and we'll be happy to help you!
