What is financial planning?

Answer 1

Often there would be times when we find ourselves short on cash and already in panic mode because we don't know where to get the money to pay for bills; utilities and worse; emergencies. Today's hard times should encourage all of us to stash a little bit of our regular income away for rainy days; and also to build a nest egg for our future retirement. This is where financial planning comes into play..

Financial Planning is a term used to describe a wide variety of financial services. This could include everything from Retirement Planning, to Estate Planning, to College Funding, to Wealth Management, to Life Insurance, and Small Business Funding, to name a few.

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Answer 2

A financial plan is where a plan is made for ones finances. For example, one may make a financial plan whereby 10% of their assets are invested in Cash ISAs, to ensure growth. These are used to ensure ones financial future is sound.

Answer 3

When people hear the phrase �financial planning� it often generates thoughts of long-term retirement planning. Contracting the services of a certified financial planner means more than just preparing for your twilight years, it becomes the first step in getting professional assistance in making all of the important financial decisions in one�s life.

Financial planners often work in what is called estate planning. Put simply, estate planning is the process of protecting your assets while you are alive, and then making sure your assets are properly administered when you have passed away. One tool financial planners use for estate planning is whole life insurance. With whole life insurance there is a death benefit portion that helps in final expenses, and there is also an investment portion that increases the death benefit and gives the client a place to invest his money where it can grow income tax free.

Financial planners are not just there when people reach their later years in life, a certified financial planner can be a valuable asset to a young couple as well. When a young couple is preparing to save for a home, a financial planner can create a plan that will help the couple save the down payment they will need on their time table.

Young couples can also use financial planning services to help provide for their children�s future. When a child is born, the financial planner can help the parents put together a savings account that will be used to help pay for the child�s college education. A financial planner can also help parents begin planning for the child�s long-term financial future by starting a life insurance policy for the child. Once the child reaches the legal age, the policy becomes something that the child can use for his own financial purposes.

A lack of understanding can prevent people from benefiting from the many helpful financial services that are available. A financial planner is not someone you call only when you are ready to start planning your retirement. A financial planner can become your certified advisor on acquiring wealth, preparing for your long-term future and taking care of your children from the day they are born.