Tuesday, August 2, 2022
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6 Financial Planning Myths Debunked

Myth #1: Financial Planning is Only For the Wealthy

One of the most common myths that we hear is that financial planning is only for wealthy people. This is not true. Financial planning is for anyone who wants to manage their money efficiently and achieve their financial goals. A successful plan can help you efficiently use your assets to build wealth over time. When we put together a financial plan, life circumstances matter more than your level of assets. The earlier you start the better because there are many important financial decisions that come into play when you are young and you will also greatly benefit from the power of compound interest.

A credentialed financial advisor can help you navigate your specific financial goals, optimize your 401(k) and IRA investments, reduce your tax liabilities, improve your cash flow, avoid making costly financial mistakes, and keep you updated on the latest regulations and market trends. An advisor can also reduce the stress of trying to manage it all yourself. 

Here at District Capital, we believe financial peace of mind is for everyone.

Myth #2: Once You Have a Financial Plan in Place Then You are Set

A Financial plan that you created at one stage of your life needs to be adjusted as your life changes. Financial planning is an on-going process. Your original plan should be adjusted and fine-tuned when there are changes in your life. As your life changes, your financial goals may also change. Financial planners will help you examine your plan regularly and assess whether you need to make any adjustments. 

Creating a good financial plan is only half of the work. It’s unlikely that your financial circumstances will stay the same throughout your life, therefore your financial plan needs to change over time too.  Once you have a plan, then you want to continue monitoring it and working closely with your financial planner to ensure that you are on track to meet your goals. For example, the closer you get to retirement, your risk tolerance may decrease because you will need the money sooner rather than later. This means that your financial plan will need to change accordingly. 



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