Top Benefits of Financial Planning for Retirement
Do you feel stressed about the prospects of retirement? You’re not alone. In fact, research shows that 15% of Americans have no retirement savings whatsoever.
Even if you do have some money stashed away, are you optimizing your portfolio? Do you have enough saved? Will you be able actually to fund the retirement you want?
There are numerous benefits of financial planning, and the right strategy can ensure you with a positive future. Let’s get into what you need to know.
Setting Your Goals
Why are you working? No, really. Why are you hustling 40+ hours a week every week?
Even if you love what you do, most of us would agree that a job is still a job. You probably don’t want to work forever! Likewise, you probably want the money you earn from work to actually work for you.
Financial planning helps you set your goals. Most people are vague in this area, and it’s to their own detriment.
Having goals is essential, but it’s essential to define and prioritize what’s most important to you. For example, maybe you want to save for retirement. But perhaps you also want to send your children to college, travel around the world, and donate to charity.
Having a basic understanding of your goals allows you to create a realistic framework for achieving them. And that gives you the momentum to put in the work now.
Reflecting On Your Weaknesses
We all have emotional issues around money. Maybe you shop a little too much and can’t manage your cash flow. Perhaps you have no idea how actually to utilize your 401(k).
Maybe you are far too conservative in your investing approach because you fear losing money. Perhaps you’re in debt, and you avoid opening your mail altogether.
We’re all human, and we all make mistakes. Having an awareness of your strengths and your weaknesses is crucial if you want to improve your financial well-being.
Financial planning provides you with a birds-eye view of what’s working and what’s not working. This vantage point isn’t a place for judgment. It’s merely a template for reflection.
Nobody expects you to be an expert on money. That’s why seeking professional financial planning may be the best decision you make for yourself and your family.
Obtaining Credible Advice
We’re in the age of unlimited information, but can too much of knowledge be a bad thing? When it comes to your finances, maybe. That’s because it’s incredibly hard to distinguish legitimate advice from amateur suggestions.
When it comes to money management, confirmation bias is a real concern. A confirmation basis involves favoring particular information that already confirms your preexisting beliefs. Many online forums and so-called ‘experts’ engage in a confirmation basis when they share their beliefs.
For example, let’s say a blogger benefited from investing in a single stock. He enjoyed fantastic returns, and now he wants to share his insider advice with you! What’s the concern? Just because that was his experience doesn’t mean it’s yours!
When you seek out financial planning advice from qualified professionals, you don’t have to sift through all the opinions and bias. You can trust that your planner is creating an action-based plan based on your needs- not theirs.
Outsourcing The Work
When was the last time you checked your portfolio and examined your asset portfolio? When did you last update your insurance?
Let’s be honest. It’s easy to forget about your cash. Managing your money requires, well, management. And there’s a good chance that you’re relatively busy throughout your day!
Between juggling your work, family, and social life, you may not have the time (or desire) to watch your investments or contemplate your retirement accounts. That’s where planners help.
Moreover, they’re acting as your advisor and educator. That means they’re teaching you about different strategies to optimize your money situation. This educational component frees up your time- and alleviates you needing to do the paralyzing research on your own!
Best of all? They specialize in making money grow. Therefore, the money you invest in hiring a planner often pays out in dividends.
Once your financial plan is in place, your planner will help maintain and manage your money for you. This ensures that your money continues to work for you.
It’s hard to do this on your own. Do you really want to be checking your accounts frequently? Do you want to be responsible for reallocating your investments and brushing up on the latest financial trends?
While your planner will check in with you regularly, you can trust them to engage in most of the heavy lifting. If you want to retire in 10 years, they are carving out the plan that helps you achieve that goal. They’re looking into the amount of money you need to be saved, the kinds of accounts you need to hold, and the insurance you should have.
Finally, good planners grow with you. They’re there for you if and when your life situation changes. That means they help modify your goals based on your income, family dynamics, and emergency situations.
Final Thoughts On The Benefits of Financial Planning
There are many benefits of financial planning. From having peace of mind to feeling more motivated to achieve your goals, working with the right professional can help turn your dreams into reality.
Are you interested in mastering your money management? Not sure if this is a service you need? We’re here to help you and walk you through what we offer. Contact us today for a free consultation.
If you are ready to retire, ready to start planning your retirement or need any financial planning help, call us at 419.491.0909 or email us. Our team is made up of financial experts who can help you ensure your financial future and retirement is secure. We will help create a custom plan based on your needs, ensuring you can move to and live wherever you desire after retirement.
Retirement. Your Vision. Our Passion
Investment Advisory Services offered though Macino Financial Services, a Registered Investment Advisor.