Financial Insights October 7, The meaning of financial literacy and its importance Written by Guest Blogger Financial literacy is the ability to understand how money works: Most financial consumers lack the ability to choose and manage a credit card efficiently, and lack of financial literacy education is responsible for lack of money management skills and financial planning for business and retirement. Most potential retirees lack information about saving and investing for retirement. Many people fail to plan ahead and they take on financial risks without realizing it.
Credential Investments Ten reasons why financial planning is important Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.
Here are ten powerful reasons why financial planning — with the help of an expert financial advisor — will get you where you want to be. 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. 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.
An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being. 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. 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. 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.
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.
A nice 'cushion' in the form of assets is desirable. But 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.
It used to be called saving for a rainy day. But 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.
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.
The first step in developing your financial plan is to meet with an advisor. This complimentary process begins with a review of your current financial circumstances, anticipated changes, future goals, and results in your customized plan.
Call us today to book your assessment. Click "contact us" below to use our secure online contact form, visit a branch near you or call us at Contact us This article is provided as a general source of information and should not be considered personal financial or investment advice or solicitation.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete.What is Budgeting? What is a Budget? Budgeting is the process of creating a plan to spend your money.
then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you.
Why is Budgeting so Important? The 6 Most Important Ages on the Road to Retirement Here are six milestone ages for retirement planning, and what happens at each one.
Matthew Frankel, CFP. The Importance of Planing for Retirement and Money Management for People of All Ages PAGES 1. WORDS View Full Essay.
More essays like this: planning for retirement, retirement, money management. Not sure what I'd do without @Kibin - Alfredo Alvarez, student @ Miami University. 10 Important Ages for Retirement Planning Keep these ages in mind to boost your retirement benefits and avoid penalties.
By Emily Brandon, Staff Writer | . · Financial decisions at retirement. 3. Contents. Introduction 4. Good retirement planning is not just about your immediate living expenses, but the potential long-term costs too.
Many people in retirement live on a mix of their own savings and. the government Age barnweddingvt.com://barnweddingvt.com Retirement Planning for All Ages | While nearly one-third of Millennials (32 percent) are worried about running out of money in retirement, according to the Franklin Templeton study 4, this generation has time on its side.
Most (69 percent) expect to rely on their (k)s for income in retirement, so saving early and regularly—combined.