Benefits of Financial Planning
by Meiz Majdoub
Financial planning is a process that can help you reach your goals by evaluating your whole financial situation, then outlining strategies that are customised to your individual needs and available resources. One of the main benefits of having a financial plan is that it can help you balance conflicting financial priorities. A financial plan will clearly show you how your financial goals are related; for example, how saving for your children’s college education might impact your ability to save for retirement. Then you will use the information you’ve gathered to decide how to prioritize your goals, implement specific strategies, and choose suitable products or services. Best of all, you’ll have the peace of mind that comes from knowing that your financial life is on track.You almost certainly have plans – starting a family, buying a primary or secondary home, retiring, or maybe annual vacation – but have you looked into the financial implications of turning those plans into reality? A financial Plan is Dynamic and must be reviewed regularly to ensure, you don’t go off tract
The sooner you start financial planning, the better chance you have of realising your goals.
Here are ten powerful reasons why financial planning, with the help from an expert financial advisor, will get you where you want to be.
- Income:It’s possible to manage income more effectively through planning. Managing income helps you understand how much money you’ll need for tax payments, other monthly expenditures and savings.
- Cash Flow:Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash.
- Capital:An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.
- Family Security:Providing for your family’s financial security is an important part of the financial planning process. Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones.
- Investment:A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.
- Standard of Living:The savings created from good planning can prove beneficial in difficult times. For example, you can make sure there is enough insurance coverage to replace any lost income should a family bread winner become unable to work.
- Financial Understanding:Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.
- Assets:A nice ‘cushion’ in the form of assets is desirable. Many assets come with liabilities attached. So, it becomes important to determine the real value of an asset. The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don’t become a burden in the future.
- Savings:It used to be called saving for a rainy day. Sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.
- Ongoing Advice:Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.
We are here to help. Make an appointment to see your advisor to ask questions, or call us.
The Majdoub Group is very experienced in this area and welcome questions, enquiries and comments. We are here for you.
About the writer
Meiz Majdoub, B.Comm, is a financial professional with over 30 years of experience and is accredited with a CLU, CH.F.C. He is also a member of the Conference for Advance Underwriters (CALU). and the Estate Planning Council Of Ottawa. He has helped individuals, organizations and corporations attain their goals in the areas of Financial & Estate Planning, Insurance, Living Benefits and Employee/ Group Benefits. He can be reached at: 613-749-4007, or firstname.lastname@example.org.