Axes to Help You Achieve Financial Freedom

SadaNews - Comprehensive financial planning is no longer just a means to accumulate wealth, but has become a comprehensive tool that gives individuals the ability to "live on their own terms" and helps them cope with major transformations in their lives, whether it be partial or full retirement, a career transition, or even health and family changes.

According to a report from Forbes magazine, the strength of a financial plan lies in its ability to "bring clarity to goals, confidence in decisions, and provide a roadmap for the future".

The magazine notes that an integrated financial plan differs fundamentally from merely preparing a budget or selecting investments, as it coordinates all aspects of financial life through key axes that include:

* Retirement planning

* Investment strategies

* Tax management

* Estate planning and wills

* Risk management

* In addition to education and lifestyle planning

* The ultimate goal is to formulate a "living and adaptable strategy" that evolves with changing circumstances and goals.

Replacing Anxiety with Clarity

The Forbes report points out that most individuals live with worrying financial questions:

* Am I saving enough?

* Can I retire at this age?

* Will I maintain my standard of living?

Comprehensive financial planning transforms these questions into an organized and transparent framework, allowing for precise financial measurement and regular updates.

The magazine believes that simply seeing the big picture organized, with clear and actionable priorities, removes a significant psychological burden from individuals.

A Map for Life Changes

Life is not a straight line, says Forbes, but involves changes such as job changes, moving to new states, receiving an inheritance, or caring for aging parents. Without a financial plan, these events become "overwhelming"; with one, they become "predictable and manageable".

According to the report, financial models help to understand how to restructure income sources or reduce taxes in a measured way.

Wealth Management and Smart Asset Use

Forbes adds that smart investing alone is not enough; assets must be placed in the appropriate accounts (taxable or tax-deferred), withdrawals must be made strategically, and dividends and charitable donations must be managed in a coordinated annual manner.

This methodology, as the magazine explains, "increases and preserves wealth" and improves the chances of achieving short- and long-term goals.

Legacy and the Deeper Purpose

The report emphasizes that legacy goes beyond numbers to reflect values and the impact an individual leaves behind.

Legacy planning may involve creating endowment funds, reviewing beneficiaries, or preparing children to manage the inheritance, with Forbes stating, "Legacy planning goes beyond transferring wealth; it is about creating lasting meaning".

From interest rates to inflation and tax regulations, change is inevitable, but the financial plan - as Forbes indicates - provides individuals with long-term stability and helps them avoid confusion amidst market fluctuations.

Clear Shortcomings in Financial Planning

A study by FINRA in July revealed, as reported by Forbes, that retirement readiness in a country like America remains weak; only 39% of adults calculated their required savings, and only 41% have a retirement account, while 63% feel anxious when thinking about their financial affairs.

The magazine concludes that comprehensive financial planning provides clarity and balance, acting as a "long-term roadmap" that helps individuals adapt to changes and create a safer and more stable future.

Source: Forbes