Currently, only 31 percent of families in US opt for comprehensive financial planning strategies, erroneously believing that financial strategies are only for the rich. This article discusses why they should bring a financial change.
It has been widely believed that financial plans are only for the rich. But having a comprehensive financial plan can be profitable for people with different income levels. Sadly, as per 2012 Household Financial Planning Survey, only 31 percent of Americans have a comprehensive financial plan. Considering that financial arrangement incorporates savings, investments, retirement, emergencies, child education, major real estate purchases, financial goals and insurance needs, more people should opt for a comprehensive financial plan, especially if they fall in lower middle, middle or upper middle-income groups.
Having a strong financial strategy and choosing a financial advisor can help individuals or couples establish and accomplish their goals. Individuals who fall in financial categories other than ‘rich’ are anxious about their retirement plans. At the same time, the rich or the higher income group continuously stress about making major purchases such as private properties. Having a financial plan helps in accomplishing one’s financial goals. A financial planner can effectively plan an investment and saving strategy to help accomplish your particular financial goals in life.
Financial planning and strategy also helps in deciding whether one’s goals are realistic, taking your timeline into consideration. By choosing a financial planner or advisor, one can get cost-benefit analysis, which helps in understanding whether the goals are attainable. For instance, it helps in analyzing whether one can save a particular amount of money for retirement, the number of years it would take to clear off particular debt and how long it would take to organize college fund for your child.
Financial planning is also necessary for those who wish to spend their income intelligently. Financial planners judge one’s situation, income and lifestyle. Accordingly, they devise a plan wherein you can look at your cash flow and determine expenses and savings.
Having a finance strategy also helps to ascertain all sorts of monetary mistakes you may be making. For instance, a financial planner can expose your mistakes and provide easy fixes for your situation. Therefore, financial planning can help in organizing your expenses, savings and investments. At the same time, strategizing gives one the opportunity to undertake money-management services.
To ensure that you get the best planning and financial strategizing services, you need financial holding services and advice, wherein you as an individual are in-charge of assets. So, choose an organization that provides broad array of financial products and services, while focusing primarily on investments and money-management. Opt for a fiduciary that places a client’s interest over their own. Ask for their credentials, licenses or any certifications that they may have. Look for sample financial plans that they have. Lastly, ask for the specific services that the firm provides and choose accordingly.
So, what are you waiting for? Financial planning isn’t just for the rich anymore. Opt for a financial advisor and a strategy to accomplish your goals and manage your money.