If the goal is to save for the retirement the family should prioritize their investment accordingly. They should know the investment strategies where to invest (Annuities, Dividend Funds, Roth IRA, Bonds Fund, etc.) which will help them in achieving their goals.
For people who are in their 30s and wants to grow their wealth to meet their future needs they should invest in stocks which would provide them with dividend, EFTs (Exchange traded funds, Mutual Funds, 529 Plan to save and invest for children education expense, etc.
Creating a Tailored Budget
A personalized budget is the key component of financial plan. When preparing a personalized budget it should reflect with the individuals income, fixed expense (rent payment or mortgage), variable expense (groceries and entertainment). By crafting a personalized budget that align with the financial goals, it will help in saving more for future and spending wisely.
According to the data derived from US Bureau of Labor statistics, American household expense which includes housing, transportation, food, healthcare and other expenses are one of the largest expenses covering around 30-35% of the total expense.
According to research studies and surveys around 86% of the people create their own personalized budget face ease in managing their financial obligations like paying off their debts and saving for their children education.
Most important aspect when crafting a budget is to prioritize the expenses accordingly. If main priority is to pay off the debt, it should be the top priority in the budget. Considering a family, they should pay off their debt with high interest like credit cards.
Credit cards have high interest rate around 20%. If the top priority is to pay off this debt then the family can secure money in the long-run by reducing the amount of interest to pay overtime.
After setting up the priority and keeping money aside for it, a family can easily secure their remaining money for other expenses and non-essential items. This will help in reducing the financial burden and would help in saving for future financial goals.
Building a Personalized Investment Strategies
Personalized investment strategy is an important aspect as it helps in building down the wealth and achieving long-term financial goals. Jumping down into investments requires risk tolerance, time horizon and financial goals. People in their 30s or people near their age of retirement can jump into the personalized investment strategies.
Talking about people in 30s their core focus is to grow their wealth to meet their financial needs. To grow their wealth, they can invest in stocks, mutual funds and EFTs which would help them in their long-term financial goal.
On the other hand, people who are near their retirement age can invest their money Annuities, Dividend Funds, Roth IRA, Bonds Fund, which would generate a steady income source to enjoy their retirement period as it is considered low risk investment.
For example if an individual is of age 40 and wants to retire at 65. His financial advisor/consultant would advise him to go towards diversified portfolio where there would be a mix of 70% of stock and 30% of bonds. This diversification would reduce the risk of loss and increase the balance growth potential.
Planning for Retirement for a Customized Approach
Planning for retirement is an essential part as it helps in saving enough money which will help an individual or the family during the period of retirement.it emphasis on how much money to save and helps in choosing the best investment strategies for the retirement, helping in maximizing the social security benefit.
A customized retirement plan is crafted to fulfill the needs and goals of an individual or a family during the period of retirement. It include strategies on how to manage taxes and how much amount of money to withdraw in a way that it keeps the income steady throughout the retirement period.
If a family or an individual have 401(k) and IRA, their financial advisors would advise them to contribute to both accounts. Through this way it will help in getting benefit from employer matches in 401(k) and help in enjoying the tax advantage in both the account. This strategy helps in maximizing the retirement savings, ensuring that it creates a decent amount to live rest of the retirement years comfortably with peace.
Personalized Debt Management Strategies
Managing debt is one of the main components in Personalized Debt Management Strategies. It helps in prioritizing which debt to payoff first. If an individual have debts such as mortgage, car loan and credit card debt, his/her financial advisor would advice to payoff credit card debt first as it leads to higher interest rate of approximately 20% causing a depletion in the savings.
Furthermore, debt management strategies provide more options like refinancing or debt consolidation. Refinancing helps in replacing the existing loan with the new one that has better terms. This helps in paying off the debts easily, creates a budget that works in circumstances.
Debt Consolidation is a debt management strategy that combines multiple debts in a single loan or credit account with single monthly payment. The goal of debt consolidation is to reduce number of monthly payment and making the repayments less expensive.
Tailoring your Financial Plans with Zia Consultants
Creating a financial plan on own is possible. Joining Zia Consultant would provide you with a complete package including debt management, saving for retirement, safe and risky investments and creating a diversified portfolio which will enhance your financial strategy.
Trust Zia Consultant to craft your personal financial plans to achieve your financial goals, guiding you towards a bright and secure future.
