Financial planning is the process of estimating future financial requirements and the determination of appropriate financial policies to achieve specific goals. It is a systematic approach to achieving our financial goals both in the short term and long term.
At AG Morgan Financial Advisors, they understand that your financial security is important to you and your family. That’s why they take the time to get to know you and your unique situation.
- To have a clear understanding of our current financial position: This will give us an idea about our starting point and help us assess how much we need to save or invest to achieve our goals.
- To set financial goals: We need to be clear about what we want to achieve in life. This could be buying a house, saving for retirement, or children’s education.
- To create a road map to achieve our goals: This will involve creating a budget and investing in the right instruments, which will help us reach our targets.
- To review and monitor progress: We need to periodically review our progress and make necessary changes in our plan if required.
- It gives a sense of security: Financial planning is important for everyone, especially those who are the sole breadwinners of their families.
- Achieve Objectives: To find out how much we need to save on a regular basis to achieve our desired future financial goal. This will help us in formulating our investment plan. Understanding the different investment options available and making informed investment decisions can help us in the long run.
- To have clarity about our current financial position: This will give us an idea about our starting point and help us assess how much we need to save or invest to achieve our goals.
- It helps in making informed financial decisions: With a clear financial plan, we are less likely to make impulsive decisions with our money.
- Helps in achieving financial independence: A good financial plan can help us become financially independent and reduce our dependence on others.
- Gives peace of mind: Financial planning gives us a sense of control over our finances and helps us achieve peace of mind.
- Having a clear understanding of our risk tolerance level: This will help us in choosing the right investment instruments which are in line with our risk appetite.
- To create an emergency fund: This will help us meet unexpected expenses without derailing our financial plans.
- To save on taxes: A good financial plan can help us minimize our tax liability and maximize our returns, and to reduce our tax liabilities by taking advantage of various tax saving schemes.
- Retirement planning: To plan for our retirement so that we can live a comfortable life even after we stop earning.
Financial planning is a continuous process, and we need to review and update our plan as per changes in our life circumstances. We should also keep track of changes in government policies, economic conditions, and inflation rates as they can have a bearing on our financial plans.