| |
Are you paying too much for convenience?
By: Alvin T. Tabañag, RFP®
Usually, after my regular morning run, an enterprising guy passes by our street pushing his make shift vegetable cart (it’s actually a worn down baby stroller) and hollering at the top of his lungs “guulaaaay.” I figured that the prices of this ambulant vendor’s merchandise are 10-20% more than those sold in the neighborhood mini-market which is only a 3-minute walk from our house. I often see a lady neighbor buy vegetables from this guy and I can’t help but think about the extra money being spent unnecessarily.
She’s probably paying P5 more every time she buys from him instead of walking a short distance to the neighborhood store. True, the amount is not such a big deal. But spending an extra P5 everyday adds up to P150 monthly and j...
|
How important is Financial Planning!
 Years ago, the financial life of the average family was relatively uncomplicated. People worked for the same company most of their lives, lived a few years in retirement on Social Security and their pension, and passed their modest estate on to their children. However, increased longevity, changing demographics, and a more complex, dynamic financial world have changed all that.
Consider these tough financial facts:
- Many of today's retirees will live 30 years or more in retirement - requiring far more financial resources to maintain their desired lifestyle.
- Social Security and company pensions may no longer provide the majority of your retirement income.
- Tax laws change almost annually.
- Downsizing companies no longer provide "cradle-to-the-grave" benefits or job security. The average American changes jobs seven times in a lifetime, and millions are self-
|
|
The Financial Planning Process
 Financial planning is a process - a process where you stop working for every peso and learn to start putting your money to work for you. The first step is to gather and analyze data about your income and expenses, taxes, insurance coverage, retirement plans, wills, trusts, investments, and other information that is pertinent to your overall financial situation. The next step is to set realistic goals, identify key financial issues concerning those goals, and implement specific strategies for achieving your goals. These strategies may include building an emergency fund, establishing a spending and savings plan, beginning or adjusting an investment program, purchasing disability or long-term care insurance, drafting a will, establishing a trust or developing a business succession plan. The last step in the financial planning process is to periodically review and, if necessary, revise your plan.
The financial planning process is not a "one-size-fits-all" package. It is a set of goals and strategies tailored to meet your specific values, abilities, and needs.
|
|
|
|
Ask your RFP®
Q. How will you benefit from Financial Planning
A. Financial planning will give you a clear picture, perhaps for the first time, of where you stand financially. Many families have no idea of the value of their estate, how they spend their money, or what their money can do for them.
Financial planning will provide direction and discipline. Without this direction and discipline it is very probable you will make impulsive, random decisions; you might buy this insurance, invest in that hot investment, adopt the latest tax strategy. The pieces not only don't fit together, they may actually conflict with each other and compound the problem. Financial planning integrates your assets with your goals and objectives.
Financial planning can give you peace of mind. Uncertainty about finances creates anxiety. Money is the most common cause of marital stress and divorce. If you know where you stand financially, where you are going, and how you're going to get there, you'll feel more confident about your financial situation, about yourself and about your relationships.
| |
Do you have questions? Click here to ask now.
|
|
|
| Join the 19th RFP Program April 10- June 5,2010 at Oakwood Premier Joy- Nostalg, Ortigas, Pasig City |
|
|
Grab a copy of the official RFP Magazine!
| |
|
|