15 Reasons Why You Need A Financial Plan
Financial Planning is a vital process to undertake if you are to achieve what is most important to you in life. Think about what you really want to achieve, it may be:
- Early retirement,
- Affording private education for your children,
- Owning that dream house,
- Travelling the world,
- Or perhaps dedicating time helping those less fortunate than you.
- Whatever matters most to you.
Whatever your dreams it is very easy to put it off and hope that with a bit of luck they will be fulfilled. Below are 15 reasons why you should not delay your Financial Planning any longer:
- It gets more expensive to fund your goals and dreams the longer you leave it.
- The sooner you save or invest the sooner you will benefit from compound interest.
- You will become more engaged and motivated to fulfill your goals when there is a plan in place.
- You can afford to take greater investment risks the longer the timeframe, meaning you have to commit less capital resources to the goal.
- You will be more likely to be able to cover the impact of disability or long term illness on achieving your Financial Planning objectives.
- You are more likely to be able to take payment ‘holidays’ if required rather than face a shortfall or need to commit to more capital than is affordable.
- You may be lucky enough to build up surplus assets to enjoy beyond those needed to achieve your Financial Planning objectives.
- You will have greater control over what you do and when by being financially independent.
- You can afford periods of poor investment returns or years of below average earnings.
- You haven’t yet considered the cost of care fees in later life which will drain any capital resources you have built up.
- The State will not support you.
- You may not receive the inheritance you are planning on (see point 10).
- You may face a house price crash when you plan to downsize to release capital with which to meet your lifestyle in retirement.
- Inflation is killing the value of your cash.
- Annuity rates are only going one way (down!). Your current pension planning may not (will not) provide the income in retirement you expect.
If you would like to receive help with your personal financial planning click here.
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