1. Define the Purpose for your Money
Financial planning helps people identify the purpose of money. Whether it's to fund your children's education, plan for retirement or simply achieve financial goals. Developing a financial strategy can open up multiple possibilities if you are not clear about what you want to do with your money. A well-structured financial plan provides clarity, discipline and direction for the future.
Warren Buffett advises investors to keep 90% of their savings in a low-cost S&P 500 index fund and 10% in bond instruments.
Financial Well-Being
Financial planning can provide a sense of comfort and peace of mind. Knowing that you have a well-structured plan can alleviate financial anxiety and stress. With a financial strategy that is prepared for a variety of situations, you can face financial uncertainties with confidence.
Nearly 2 in 3 adults (64%) say money is a major source of stress in their lives, and about half of adults (52%) say they have experienced financial shocks.
3. Emergency Preparedness
Life is full of unexpected events and emergencies. Financial planning ensures that you are prepared for these unforeseen circumstances. With an emergency fund, you can weather financial storms without jeopardizing your long-term goals.
37% of adults in the United States did not have enough savings to cover a $400 emergency. This highlights the importance of financial planning.
4. Retirement Planning
After a lifetime of hard work, you deserve a carefree retirement. Financial planning allows you to save and invest wisely to retire comfortably and enjoy the golden years without financial stress. It ensures you have a financial cushion you can rely on as retirement approaches.
"Indeed, Warren Buffet's entire financial success can be tied to the financial foundation he built in his first year and the longevity he maintained in his geriatric years. His skill is investing, but his secret is time" (Morgan Housel).
5. Create Healthy Financial Habits
Financial planning helps establish and maintain healthy financial habits. Promoting budgeting, saving and responsible spending are essential for long-term financial success. Having an active financial plan helps maintain discipline and avoid making impulsive financial decisions.
"As a rule of thumb, 28% of your income is the maximum you should spend to pay your mortgage or rent."
6. Why Invest in a Financial Advisor
While individuals can plan their finances independently, there are many reasons to consider working with a financial advisor. These professionals have in-depth knowledge of various investment opportunities and can effectively manage your wealth, aligning them with your financial goals and risk tolerance.
Historically, the S&P 500 has averaged about 10% of long-term annual return. Compound interest is an investor's best friend. Albert Einstein called it "the eighth wonder of the world. He who understands it, earns it...he who doesn't...pays it."
At Singular, your advisor becomes a trusted partner, committed to helping you achieve your financial goals. All decisions are backed by a team of experts who develop personalized plans tailored to your specific needs, ensuring a comprehensive approach to your financial well-being.
Work with one of our consultants to assist you during this process.
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DISCLAIMER: Singular Wealth Management, Corp. and Singular Securities, Corp. (SWM&SC), offer perspectives on various markets, sectors and investment opportunities that could be valuable to subscribers of our editorial content. This includes views on different types of securities, as well as commentary on economic and political scenarios. It is crucial to understand that this publication does not constitute financial guidance and is not an invitation to make specific investments. For personalized advice, we recommend using the Unique Advisory Services through our Securities House's qualified financial advisors to achieve your investment objectives. Although the information in this publication comes from reliable sources, we cannot guarantee its accuracy or completeness. Information is current at the time of publication, but may change without notice. Investing in securities involves risks, including the possible loss of principal, and past performance is no guarantee of future returns. SWM&SC personnel may invest in the securities discussed from time to time without receiving any compensation from the companies mentioned. We disclaim any liability for damages resulting from the use of our services. Entity regulated and supervised by the Superintendencia del Mercado de Valores of the Republic of Panama. Singular Wealth Management Corp., "License to operate as a Securities Brokerage Firm, Resolution CNV- No. 219-2005 of September 19, 2005". Singular Securities Corp., "License to operate as a Securities Brokerage Firm. Resolution SMV- No. 672-15 of October 21, 2015"....
