Today, the economy remains unstable as it was years before. And you can certainly expect the economy to remain volatile in the future as the well. As such, financial planning has indeed become increasingly significant. This is because creating and having a financial plan can help anyone see the big picture and set long- and short-term life goals.
Financial Planning Myths
Financial planning though is not an easy or straightforward task. There are certain myths associated with this important endeavour that can hinder the whole process or stop you from achieving your goals. Below are the top financial planning myths:
You are saving enough for retirement. A lot of people underestimate how much money they will require when they retire. Keep in mind that how much you save should take into account risks like outliving retirement savings, losing purchasing power or inflation, and market fluctuations.
You should have some investments before getting a financial plan. Financial planning encompasses much more than investing. It is also about protecting what you already have so it's there whenever you require it.
You completed a financial plan years ago, so you’re fine. Many things can change in a year. Even if you feel like your personal finances haven't changed much or that you haven't faced any momentous life-changing events, it does not mean you should wait to review your plan until something big happens. Seasoned financial advisors recommends that you revisit your financial plan at least once a year, just to make sure your plan is still in line with your objectives.
Info source: catchtherisingtide.com.au
Financial Planning Myths
Financial planning though is not an easy or straightforward task. There are certain myths associated with this important endeavour that can hinder the whole process or stop you from achieving your goals. Below are the top financial planning myths:
You are saving enough for retirement. A lot of people underestimate how much money they will require when they retire. Keep in mind that how much you save should take into account risks like outliving retirement savings, losing purchasing power or inflation, and market fluctuations.
You should have some investments before getting a financial plan. Financial planning encompasses much more than investing. It is also about protecting what you already have so it's there whenever you require it.
You completed a financial plan years ago, so you’re fine. Many things can change in a year. Even if you feel like your personal finances haven't changed much or that you haven't faced any momentous life-changing events, it does not mean you should wait to review your plan until something big happens. Seasoned financial advisors recommends that you revisit your financial plan at least once a year, just to make sure your plan is still in line with your objectives.
Info source: catchtherisingtide.com.au
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