Christian Retirement Financial Planning
Christian retirement financial planning can be very successful if an individual finds a personal finance planner that understands the important points of investing for long-term solutions. A person will need to consider several important issues with retirement financial planning in order to put together a financially sound portfolio. Some important considerations include putting together an estate plan, getting debts under control, choosing the best type of life insurance policy, determining cash flow, and investing diversely. Some sites online offer some tips on how to successfully plan for the future including offering worksheets to help determine cash flow, to list out assets and liabilities, and to put together a personal budget. "Then she came and told the man of God. And he said, Go, sell the oil, and pay thy debt, and live thou and thy children of the rest" (2 Kings 4:7).
Finding a personal finance planner can be beneficial for a person who needs the direction of a professional to plan for retirement. A professional planner should have formal education and professional training on the various ways to invest and save for retirement. In addition, a planner should be involved in continuing education periodically to keep apprised of new methods to assist a person with saving for the future. Retirement financial planning by a professional should include a free consultation so that the interested party can determine if he or she will want to use the professional's services or seek information elsewhere. A person may want to ask to speak to the planner's clients or ask for references in the effort to make an informed decision. In addition, most professionals who provide financial assistance for future needs will have a brochure that spells out their credentials, who they are registered with, and any fees charged for services.
Considering how to put together an estate plan is an important decision that needs to be made with retirement financial planning. An estate plan will include all assets, all debts, any benefits from life insurance policies, medical problems, potential family disputes, and a list of all demographic information including names of all family members and beneficiaries. A detailed list of all possessions and any business interests should be included with a breakdown of assets. If there is a chance that a client might receive an inheritance then he or she needs to include that information in an estate plan. Lastly, a person should make sure that his or her wishes for distributing assets to heirs should be included as well.
Getting debts under control and having a plan to pay them off is an essential part of retirement financial planning. A personal finance budget should include each creditor, amount owed, monthly payment amount, and when the account will be paid off. If possible a person should consider doubling up on high interest credit card debt to minimize interest paid. Having a plan can help an individual avoid becoming overextended with debt and can help him or her to see long term solutions for paying off debts. Seeing all debts on a worksheet can help a person realize the need for living on a budget and in having long-term goals to eradicate debt. In addition, not being overextended can help a person when facing a financial crisis such as changing jobs or not being able to work because of a serious medical illness.
An important consideration towards retirement financial planning includes making a smart decision on a policy for life insurance. The only way to do that is to learn what types of policies exist. The two main types of life insurance policies are term and whole life. Term insurance provides a death benefit but does not provide a cash value. Whole life provides cash value so this type of policy is considered an investment. Term life is good for family protection whereas whole life is good when considering estate planning because of the cash value being an investment for the future.
Determining cash flow is an important part of successful investing. Determining cash flow helps a person to consider how much cash can be used for short-term emergencies and for long-term investments. Determining cash flow is an important consideration towards retirement financial planning. An individual can determine cash flow by listing out all monthly income and all monthly expenses both fixed and flexible as well as expenses that do not occur every month. This might include automobile insurance which is only paid every six months or medical expenses that only occur periodically. Having income and expense information will allow a person to see cash flow much easier. Knowing cash flow can help a person to know how much is available to put towards retirement investments.
An investment portfolio needs to be managed wisely. The best way to invest is to do so diversely. Diversity provides more security toward retirement financial planning because all investments are not dependent upon one source doing well. Diversification helps an individual have some additional security. If one investment suffers a loss the hope is that another one will make money. Diversified investments may include stocks, bonds, fixed-income investments, money market investments, and mutual funds. This is one area where a personal finance planner can help with decisions on what to invest in, how much to invest, and when to do so. A professional that has a good understanding about different types of investments will know what recommendations to make both for short-term and long-term solutions.
Christian Financial Planning CompaniesProfessional financial planning companies help families and businesses meet present and future goals through sound money management. A popular saying is absolutely true: "Most people don't plan to fail, but they fail to plan." Seniors who rely solely on Social Security to sustain them after retirement can find themselves searching for low-paying jobs just to make ends meet. College graduates who spend four years preparing for a lucrative career which may never manifest can become sorely disappointed and deeply indebted. And adults who spend a lifetime working for a better future for their families can come short of the goal without sound fiscal planning and consistent management. And although the needs of the present seem to outweigh those of the future, planning today for a financially stable tomorrow should take precedence. The first step to future monetary security is engaging the services of professional financial advisers to help gradually build monetary reserves to reach long term goals.
Anyone with a reasonable income would be foolish not to plan for the future. Children grow up overnight and college expenses loom large. Chronic illness or job losses can drastically impact limited resources. And as parents age, long term care becomes a greater consideration for those who are unable to remain independent. While some consumers live paycheck to paycheck with no thought for the future, financial planning companies can help families prepare ahead for life's expected and unexpected events. The Bible also warns us to be spiritually prepared for the Second Coming of the Lord Jesus Christ. "Watch therefore: for ye know not what hour your Lord doth come. But know this, that if the goodman of the house had known in what watch the thief would come, he would have watched and not suffered his house to be broken up. Therefore be ye also ready: for in an hour when ye think not the Son of man cometh" (Matthew 24:42-44).
Knowing how to invest and save hard earned cash to get the best return is crucial to the fiscal future of the average consumer. From establishing a college fund to saving money in a long-term retirement account, financial planning companies can help customize programs to meet specific lifelong goals and maximize assets. Planners advise consumers about making the right investments at the right time to ensure that monies are available for needed future expenses. Newlyweds may need to consult professional planners to begin saving money for a new home or a new addition to the family. College graduates will need to know how to wisely invest while waiting on the right job to help repay student loans. And mature working adults need to make the best of assets, placing monies in high-yield savings instruments, long before retirement years are on the horizon.
Sometimes passbook savings and pinching pennies is not enough; and even individuals who have built up stock portfolios for years may need expert help in evaluating assets for the best yields. Financial planning companies can assess client assets, liabilities, and current investments to help establish fiscal priorities and suggest products that will yield higher returns. Planners may also suggest diversifying portfolios to include short- and long-term assets, such as investing in Certificates of Deposit, high-yield money market accounts, and Treasury bills. Employer-provided retirement accounts, such as Individual Retirement Accounts and 401ks, can also provide a good monetary foundation for the golden years. By diversifying portfolios, investors can earn money in spite of fluctuating economic times. If money markets fail to yield returns due to escalating interest rates, smart investors can always fall back on more reliable commodities, such as precious silver and gold which retain or gain value. Financial planning companies can also advise homeowners about the appropriateness of home equity loans or reverse mortgages as a source of retirement or college income or home improvement.
Making sound investments and wise money decisions is all about timing. Professional advisers are good prognosticators of present and future economic trends and can advise consumers on the best time to hold onto assets or walk away from what might appear to be attractive ventures. While some consumers can easily budget and plan themselves, financial planning companies have the expertise and understanding of state and federal tax laws governing heir property, real estate, capital gains, offshore investments, and securities which are unfamiliar to the average individual. Consumers should engage knowledgeable advisers who are loyal and have the client's best interests at heart. Advisers act as the clients agent, discreetly undertaking the management of personal finances which might well determine the quality of life for an individual or family for generations. In a tight-money economy, no one can afford to make mistakes with money and every dollar counts. But having the expertise of an astute money manager is added reassurance that one's fiscal's future is secure.
Christian consumers seeking the aid of professional financial planning companies can browse online for links to online and local agencies. Advisers will schedule a face-to-fact appointment or offer web-based forms to help collect personal data. It will save time to prepare a personal budget and lists of assets and liabilities prior to filling out online forms or visiting with local managers. While most sites are secure, consumers should be careful not to divulge personal information which might lead to identity theft. Financial planning companies will need consumers to provide accurate information on the number of dependents, income and expenses, savings accounts, investment types, and mortgage and vehicle payments. Personal data will help determine the customer's income bracket and potential tax liability or returns relevant to investments or retirement funding. Professional financial advisers may also want to review life insurance policies to assess whether consumers and families have adequate coverage in the event of death or permanent disability. Advisers also help individuals with estate planning and establishing trusts for school aged dependent children.