At some point in life, everyone has a different financial need. This is why long term financial planning is important for every generation. But researchers associated with Financial Consulting Firms claim that more than 58 percent of the population do not have a retirement plan. Also, the workers who had invested in an employer provided retirement plan, out of which only 40 percent as for a financial advisor’s help in handling their savings or investment portfolio. So, why are people so hesitant in seeking financial advice? This is because many people are brainwashed by these following myths.
- Financial planning is only meant for the wealthy.
There is a huge myth that says financial planners should only be associated with other costly professional service providers. Luckily, the financial planning can be cost effective and affordable on the basis of your particular income, interacting openly with your prospective financial planner will assist both the parties in landing on an agreeable budget.
- My finances are few and simple, hence no help is required.
You may not have huge assets to manage, but financial planning can still be advantageous to you. For instance, most parents with young kids are aware that they should invest in buying a life insurance to protect their family. But, almost everyone tends to overlook the disability insurance which could help in recovering the lost income in the case where one parent is ill or injured. Additionally, financial planners often bear some insights most people do not take into consideration.
- Once I employ a financial planner, my work is done.
It may sound easy to hand over your finances in someone else’s hands, but no, that is not the way it works. An experienced financial planner would always cooperate parallel to you in order to help you plan for your future.
After listening to your requirements, a financial planner can give you suitable suggestions and advice but eventually you are the one in control. You will also be responsible for managing your income tax updated and your beneficiaries on your life insurance policies.
- Financial planning is all about investing money.
Yes, investing is an important aspect in building your portfolio, but this isn’t the only aspect. Experienced financial planners are trained to have a look at your financial state and considering all the factors before giving advice and suggestions. In order to assist you in developing a plan to accomplish your financial goals, your financial planner will entail budgeting, goal planning, asset managing, retirement planning, and tax planning.