After knowing
what is Financial Planning and its scope, you would be wondering what would be
the advantages over your financial planning. Below are some of the benefits you
might receive when you invest the time, energy and money to develop your own
personal financial plan.
1. Assessing Financial Picture
Financial
Planning helps you to assess your current, complete financial picture (cash flow,
net-worth, investments, income taxes, etc.) to determine your financial goals.
Financial Planning will help in analyzing every aspect (Assets, Income, Loans,
Insurance, Taxes, Business interests, Wills etc.,) of your current financial
situation in light of
your objectives as well as the current legal, tax and economic environments.
your objectives as well as the current legal, tax and economic environments.
2. Future needs
The future
finance needs become clear, sensible and realistic, both in terms of the
quantity and also the timing which leads to your financial independence
3. Financial control
Having a good
financial plan enables to have definite control over your finances. Analyzing
your current financial situation & planning for the future needs will
reduce the impact of an unforeseen financial crisis.
4. Investment strategies in sync with
financial plan (Investing in a profitable portfolio)
Individuals can
make good investment strategies in synchronization with your overall financial
plan to develop and invest in a profitable portfolio. A financial plan makes it
simpler for individuals to increase their cash flow and make good investment
decisions. Best Investing decisions are possible when allocating their
financial assets.
5. Reducing taxes
Proper Financial
Planning by allocating income and assets effectively will be helping in
reducing individual's taxes and developing a tax-deferred strategy.
6. Identify weaknesses and recommend
improvements
Financial
Planning will help you in overcoming your weaknesses in the management of your finances and
provide specific recommendations to help you achieve your financial objectives.
7. Creating a suitable retirement plan
Financial
Planning will be useful in determining 1) your pre and post retirement life
income and expenses, 2) your contributions (savings) towards it to meet your
retirement goals. Deciding and creating a suitable retirement strategy and
constantly monitoring the performance of your retirement financial plan will
give you a healthy financial future and happy retirement life.
8. Reduced Stress
By prudent
financial planning and worst case scenario planning, you know exactly what your
money is doing. This knowledge and understanding helps you feel more secure and
less stressed.
In precise,
financial planning can give you a clear picture of your current situation, a
strategy about where you are going and where you should be in future. It's
never too late to start your financial planning…
Financial and retirement planning is a must for those who want to retire financially free. It would prove difficult for anyone who hasn't planned their retirement carefully, especially if they did not plan to invest and try to at least have a passive income until they are very old.
ReplyDeleteMore of early retirement and investment here at The Do Over Guy
I agree with you, Greg. Financial planning is something all of us must do to make sure we are financially secured as we get older. By starting early and being financially free and independent at a young age, the chances of yourself being well-off and being able to take care of yourself in your retirement years increases. Just my two cents, great post. Hope more people read this and become more informed.
ReplyDeleteHey there! Thank you for sharing your thoughts about financial planning in your area. I am glad to stop by your site and know more about financial planning. Keep it up! This is a good read. I will be looking forward to visit your page again and for your other posts as well.
ReplyDeleteThe Financial Planning activity involves assessing the business environment.
Don’t avoid hiring a financial advisor because you think it will be expensive or difficult. We help you to move your accounts and combine any like-kind accounts. This way you have a better handle on what you have, and can more easily track your progress toward your financial goals. Also, because all of our services are included in a single monthly fee, you always know what you are paying with no hidden or additional costs.
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By financial planning services, you can make savings out of your income and plan for your future dreams.
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