We all are aware of the term financial planning but we do not what are the things involved in the same. Let us take a look the four important things that you should know about financial planning. What is financial planning? Financial planning is a long-term plan of how to earn and save sensibly so that all immediate and long-term goals are achieved with minimum risk and loss. Financial planning is necessarily an ongoing process that one must commence as soon as you start earning your first salary Why is financial planning necessary? Sound financial planning is of utmost importance, especially in the present times when the volatility of markets is high. Financial planning, if done sensibly will ensure that you apportion your income covering all essential like household expenses, nutrition, children’s education and so on. The same will also provide sufficient cushioning for your latter years when your ability to earn may decrease. Do I need to seek the guidance of a professional financial planner? Although you might be good at maintaining accounts and managing your income, expenditure and savings ratio, it would be a wise decision to consult a professional financial advisor. An expert in financial planning can guide you on how to protect your investments and also grow your money safely.

Investing in high-yielding dividend stocks of Microsoft, ExxonMobil, AT&T, Verizon, Apple, Texas Instruments or Shell Oil, is a safe bet as these are less risky. If you are looking to sell your low yield stocks and investing purely in the ones that provide increased dividends regularly then there are a number of industry sectors you can look into. Some of these are stocks of companies in various industry sectors such as services, healthcare, consumer goods, financial, utilities, industrial goods, telecom and so on. You can also invest in Master Limited Partnerships like the energy sector with oil and gas companies, Real Estate Investment Trusts like apartments, hotels, offices, storage, and others who lease out their properties to tenants, to name a few. Dividend growth investing is an investment strategy that does two things simultaneously – provides capital appreciation and a steady income. So, investing in businesses that are capable of increasing their dividends prove they are more stable and dependable, unlike others that perform well for short periods but are highly volatile. Increasing your income supply safely through high dividend stocks is a good option, especially appealing to investors who bank on these dividends in their retirement years. Ensure the companies you invest in have healthy and positive dividend safety scores.

Are you on the verge of retiring? Then you must start thinking about your post-retirement investments. You must look for safe investments that will give you a good annual return. It is not possible nowadays to get 5% to 7% ROI. But there are many safe places to invest. To find out safe places you need to know the type of investments that provide the protection of principals- FDIC insured money market accounts, savings accounts, and short term CDs. You will get around annual yields of 1% or so if you look for the highest paying accounts. You may go to those high-yield checking accounts, who make you jump through lots of hoops like doing a fixed number of transaction every month. Here you may look for a little more, like 1.5% return. Most of the times they limit the amount $25,000 or less, on which they will pay their highest rate. You can go to a longer time CD. There you may get around 2% returning. But Financial Industry Regulatory Authority alerts advice to be very careful about the pitches for high yielding CDs. They can even drag you towards several other retirement investment plans. All these accounts will help your money to grow fast but tax-free.

We are all well aware of the fact that we should save more for our post retirement life. We should never take the risk of not investing at the right time and leading a post-retirement life of debts. Hence, you should plan at the earliest. One should look for where to have a safe savings account, which retirement plans are high-yielding, etc. Below, you will find several types of retirement savings account that you can consider. 401(k) or 403(b) offered by your employer Like most other people, you may also find this place to be the easiest and best for retirement investment planning. Here, the money will be withheld through payroll deduction. Up to $18,000 can be saved up of your pre-tax income. If you are 50 years or above, you can save up to $24,000. If you leave your job you can roll your account over into a new employer’s 401(k). This 401(k) is normally offered by a for-profit company, but the teachers and other employees are offered 403(b). Solo 401(k) A solo proprietor can set up a solo 401(k). In this case, he or she can make a contribution both as an employee and an employer. Contribution can make up to a total of $53,000 or $59,000 for the people of above 50 years of age.

IRA, Individual retirement account, gives you the opportunity to plan your retirement savings combined with quite a few tax benefits. There are two different types of Individual retirement accounts on the basis of the tax deductions for contributions. While tax is calculated for the funds that move to the Roth IRA account, there won’t be any tax deduction at the time of withdrawal. Tax is not applied for the funds transferred to the traditional IRA account, and will be applied to the funds at the time of withdrawal. Your eligibility to several tax benefits concerning the traditional IRA and the chances of qualifying to make a Roth IRA contribution depends upon your modified adjusted gross income (MAGI). Relatively lower to the conditions in a 401(k), under the age of 50, a contribution limit of $5,500 is observed as of 2016 and 2017. An additional contribution of $1,000 will be allowed for citizens over the age of 50. It is possible to make contributions in both traditional and Roth IRA accounts, however, one should make sure that the combined total contributions is not more than $5,500 and should not exceed $6,500 if you are above 50 years of age. An individual retirement account can be created and funded alongside a retirement plan funded by the employer.

Particularly this retirement calculator is more efficient than the other ones. You will get all the forecasts of retirement savings needs, adjusting for inflation etc. It also helps you plan a modern retirement with phased income, part-time business income, real estate income, and many other income streams. In this retirement calculator, you can add up to three post retirement incomes. You need to specify their duration of time and growth. You can add up to four separate one-time benefits such as the sale of home, inheritance, sale of business etc. To be on a safer side, you should always keep printouts with you, if any factor on it changes. Still, if you are confused about anything, just click on the data entry box of that particular field, a display with special instructions will appear in the right-hand column. It is probably the easiest and fastest process to do retirement planning analysis. Retirement planning and savings calculator tips for best results If you know how to use a retirement calculator it will help you, but if misused it can be very dangerous. It allows you to model your financial plan by varying input assumptions. Then they project these assumptions into the future.

While investing in stock markets is luring, it is just as risky. All the money that you could gain could just as easily be lost. So, one could very easily be convinced not to invest in stocks. However, they have their charm, their surprise elements and most importantly they don’t constitute every penny you make but only a part of it. So, here’s why you could consider investing in stocks: Growth happens with time, even in the case of stocks. One might not realize the importance of this growth in financial savings, but stock investments give meaning to it.  Money invested for a longer duration will higher the chances for it to grow. This long term growth of money is possible in many ways, one of which is investing in stocks. This stock investment could even be made by signing up for retirement plans like 401(k) which would be sponsored by your employer. Although there are constant ups and downs in the market, which could stir up quite some tension, potential growth has been seen in the case of the stock markets over the years. Money invested in stock markets has shown to give significant returns comparatively over a good length of time.

Making money by investing in stocks is not as easy as one thinks it would be. There is a lot of research done, a lot of history dug up, a lot of thought processes and perspective involved in this market. In spite of all of that, there has not been a trend or a formula that could explain the market. However, keeping some basic things in mind could prove to be of help. Do not blindly invest into what your acquaintances and relatives choose to be the best option. Always make it a point to know what you’re getting into, to be backed up by your research and knowledge than merely, following someone. It is also not advisable to just go by the name and fame of an organization without completely knowing how it has been in the market and gaining some information regarding what work the organization does, how it could stand out to be beneficial to you and certain other details. Timing the market is something that has been unachievable and remains to be. It could stay that way for decades to come. However, investors are trying to find the ups and downs of every investment they make in the market.

Foreign exchange, commonly called Forex or FX is the market in which currencies, or simply put, money, is traded. It may sound contradictory at first. How is it possible to buy and sell money ? Well, money is not traded physically here. With the help of modern technology, currency is bartered electronically between the many financial markets around the world. This is done 24 hours a day for almost five and a half days a week. Because of the vast time difference around the globe, financial markets are almost always open somewhere in New York, London, Zurich, Paris, Frankfurt, Hong Kong, Singapore or in Sydney and doing brisk business at any given point in time. Fewer rules, with no central governing body, a wide and extended trading duration, a fluid market structure and low fees and commissions are all favorable factors for those who are keen to step into the world of Forex trading. Converting one currency into a different one is the essence of trading here. Just ensure that the new currency you are trading is likely to increase in value over a period. Constant trading back and forth should ideally result in profits for you. Scan through publications that teach you how the process works.

Money. Wealth. Funds. Assets. Capital. Finances. All these words refer to the same thing, right? Right, and wrong. Depending on the context in which we use these words, their meanings change. In a broad sense, they all can be used interchangeably. But in the context of investment services and wealth management, we must understand their exact interpretations. While both investment advisors and wealth managers work in the same field of handling money, and the main purpose of both is to grow and multiply income and maximize profitability for their customers, there are a few differences too. Investment advisors advise clients on the type, timing, and mode of making investments, and may try to sell specific products, but the eventual decision whether to act on the advice rests with the client, without whose permission the investment advisor cannot operate. To provide valuable suggestions to help increase income is his duty. Analyzing available funds, considering the level of risk a client can bear, evaluating market conditions, identifying prospective investment options and projecting anticipated returns is the task of investment advisors. A wealth manager, on the other hand, is given more power to use the client’s assets in their custody to increase their value, based solely on the client’s long term financial goals and needs.

Having a Social Security Number (SSN) is a must for collecting Social Security benefits and for availing other government services. This is an important piece of document, and it is recommended that it be kept safe and is not necessary to be carried in person always. To qualify for applying for a Social Security card replacement online: Create ‘my Social Security’ account Be a U.S. citizen, above 18 years of age with U.S. mailing address Have a driver’s license or a state issued ID card (list of states is available in the ssa.gov website) If you are requesting a name change or any other change in your card, online application is not for you. In case, you do not qualify to apply online; it is advised that you visit the local Social Security office along with the required paperwork to apply for your Social Security card replacement. Smart Tip: While submitting the documents ensure that originals or copies certified by the issuing agency are only submitted. Photocopies or notarized copies are not accepted. Get a certified copy of birth, marriage or divorce that took place in the country. Before applying for a replacement card, know that this service is provided free of cost by Social Security, stay away from frauds or agencies who claim to offer this service for a fee.