Plan A Comfortable Future With Financial Planning

Boca Raton is known for having a population of high average income and net worth. So does that mean that people of Boca Raton do not need financial planning? Certainly they do! Financial planning is not all about making big money, rather it is about making sure that your future will be financially comfortable and as per your goals and objectives.

At some level or the other, we all do financial planning. However, what remains to be seen is how efficient or effective our financial planning is and whether or not we have time to concentrate on our financial planning. Finance, is a world of great uncertainties and risk. It requires a high degree of knowledge and information about how finance sector works and few of us are actually trained to comprehend it. So it is better to let a Boca Raton Financial planner do the financial planning for you.

Financial planning stages

Calculating your worth
Establishing financial goals for future
Evaluating risks involved
Creating strategies to avoid investment risks
Make investments and monitor performance

What is your net worth?

The first step of financial planning Boca Raton is to evaluate your present financial status. It involves calculating the net worth of all your assets and analyzing all your cash flows. Analyzing cash flow means, calculating your net income sources and your total spending. Your net worth is the difference between your total assets and total liabilities.

What are your financial goals for future?

Once your net worth has been found out, the next task of the Financial planning Boca Raton is to establish your financial goals for future. This decision is dependent upon a number of factors like:

When do you plan to retire?
How will your income fluctuate in future?
What will be effect of Taxes and inflation on income?
How much income can you set aside per month/year?
How much do you want to spend per month after retirement?

Preparing a financial plan

Based upon your present worth, your cash flows in future and your long term financial goals, a Boca Raton Financial advisor can prepare a financial plan for you. It involves categorizing the future goals into various segments which can be individually managed. These categories are:-

Cash flow analysis
Investment strategy
Risk management
Estate planning
Retirement planning
Tax planning

Cash flow planning The basic and fundamental financial planning function is to analyze a persons present cash flows and take necessary steps to improve the cash flow stability and not let spending takeover earnings at any stage and lead to a situation of debt trap. A Boca Raton financial advisor can prevent your wasteful spending like high taxes, interest on borrowings like credit card etc and increase your cash flow by simple tricks like lowering EMIs or creating new sources of income like income from investments. Your financial planner also arranges cheapest possible borrowings for you if and when required.

Investment strategy A Boca Raton financial planner can create investment strategies which will add to your capital. Investment strategies depend upon your risk capabilities and funds flexibility. If you have greater liquidity and you are young, your financial planner can invest in short term high return investments like stocks and derivatives but if you are close to your retirement then investments are low risk based like government bonds or real estate. Usually low risk investments will give low ROI. A diligent financial planner can use investment tactics like hedging and arbitrage to minimize risks on your investments.

Estate planning Your estate is part of your net worth. To manage your estate is also a crucial part of estate planning attorney boca raton. Your estate includes your real estate, your wealth, financial assets etc. A financial planner protects your estate assets against any liability claims or legal suits by attaching them to Trusts or transferring the title to some other nominee while continuing to own the assets rights. The estate planning aspect of Boca Raton financial planning involves protection of your estate while you live and passing on the estate to nominated beneficiaries as per the prepared estate plan, Wills or Trusts.

Retirement planning

This is the most crucial component of Boca Raton financial planning. As long as you are young, you can survive a bad financial situation and work hard to come out of it. But at old age, it will not be possible to make amends to a bad financial planning. So your financial plannings real acid test is how effectively it helps you out in your post-retirement age. Retirement plan involves creating effective pension plans, income plans, contingency funds, healthcare insurance and special purpose funds etc apart from good amount of bank savings and low taxes.

Tax Planning

Tax planning is the ability to minimize taxes on income or assets by availing maximum benefits of tax exemptions, rebates, deductions etc. As money saved is money earned, tax saved by smart Boca Raton financial planning is equivalent to a source of cash flow. For individuals with high net worth and high incomes, this can mean saving a lot of funds. Tax planning is not tax evasion. It is only optimizing the benefits given by government or a tax authority to reduce the net tax payables. For example you can reduce your taxable income by contributing up to $17,500 yearly if you are younger than 50 years of age and $22,000 yearly if you are above 50 years of age, into 401 (k) retirement saving plan or into Roth 401(k) retirement plan. 401(K) plan will be taxable after retirement but Roth 401 (k) income wont be taxable. Another tax saving option is depositing up to $5,500 annually into IRA (Individual Retirement Account).

Plan a risk-free future!

With Financial planning Boca Raton you can plan for a very secured financial future where you live an affluent or comfortable life as per your preset financial goals. Absence of financial planning is bound to lead to financial bottlenecks and borrowings leading to debt traps or reduction of net worth.

Boca Raton Financial advisors work diligently with highest fiduciary standards to assist their clients in preserving and growing their net worth and assets and also help them plan their financial goals and achieve them. Boca Raton financial advisors normally charge flat fees for their services though they may charge their fees as a percentage of volume of finances handled.