5 Common Myths about Financial Planning

It is true that the objective of financial planning may vary for different individual but the need for it is also interpreted differently by many. This gives rise to various myths & speculations related to financial planning. We list down the most common myths of financial planning:

1. Life Insurance has solved my family’s crisis after my death:
It is the most common myth that financial planning is complete when you have insured your family against crisis but the question is will that suffice all their needs considering the soaring inflation & various unexpected expenses that crop up.

2. Don’t have sufficient funds to start planning for investments:
The most common perception to avoid financial planning is that funds are never sufficient but contingencies come up without invitation. It is important that you are prepared for them & saved now. It becomes all the more important to plan your finances so that you make your money work for you.

3. Financial Planning is all about investments: 
True financial planning involves investments but is not only restricted to it. It includes various other aspects like budgeting for day-to-day expenses, making smart tax decisions, planning for your retirement & various other things are equally important. A financial planning professional can offer assistance in all of these areas.

4. We are too young to think about financial planning: 
It is under this common mis-conception that most people push financial planning to future. It is important to understand that planning for future or retirement is not a contingency but a necessity that can be easily worked upon when started early. It not only gives you the advantage of compounding of savings but also take cares of inflationary pressures

5. Wealth will be inherited & does not need financial planning:
Will is a very important part of inheritance & financial planning involves making of a will to avoid disputes. It ensures there is smooth flow of the inheritance you are going to inherit or pass on.

Separating fact from fiction is an essential step toward building a sound financial plan. And a sound financial plan ensures you have the right support to achieve your goals in life. Clear all your myths & get the right advice for your financial planning with our experts at http://www.karvywealth.com/home.aspx