Top Ten Myths
Myth #1: I Have Substantial Assets Therefore Planning Is Not Necessary
Myth #2: Financial Planning Means Retirement Planning
Myth #3: Financial Planning Is The Same As Investing
Myth #4: Everyone In The Financial Services Industry Is A Financial Planner
Myth #5: Financial Planning Is Not Necessary Because My Accountant Prepares My Income Tax Return
Myth #6: Financial Planning Can Wait Until I’m Older
Myth #7: My Estate Is Not Subject To Tax
Myth #8: I Am Properly Insured
Myth #9: I’m Saving Enough For Retirement
Myth #10: Financial Planning Is Only For Wealthy People
Success Depends On More Than Knowledge
During our research for the ten myths we found that clients’ understanding of financial planning varies greatly regardless of income level. These myths are simply misconceptions or a lack of knowledge and can easily be rectified with accurate information. However, we also discovered that the probability of one’s financial success is not purely dependent on knowledge but also on self discipline and a healthy attitude toward personal finances.
Here are characteristics and misguided beliefs that may prevent people from improving their financial situation.
- They are afraid of planning or don't bother to plan at all
- Expect a quick fix instead of a long-term strategy
- Hope things will take care of themselves without making any changes
- Don't set measurable financial goals
- Are afraid to take a close look at their cash flow
- Expect unrealistic returns from investments
- Believe financial planning is only about assets and don't mention liabilities
- Don't understand that good financial advice depends on them providing accurate and complete information
- They don’t take personal responsibility for their financial affairs
- Aren't willing to make the changes necessary to meet their own goals
- Give no consideration to tax planning or think about it only at tax time
- Don’t review their financial plan periodically, thinking it's a one time event
These examples illustrate poor fiscal habits and indifference or fear about one’s financial situation. This mindset can be an obstacle to a person’s financial well being.
Mapping out a plan for your money is important regardless of your age, occupation or income level. If you would like to learn more about financial planning and what it can do for you, we encourage you to speak with one of our financial advisors. Start with an open mind toward the process required for personal financial achievement.
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