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Planeacion Financiera Personal - Personal Financial Planning

There are lots of misunderstandings and outright untruths about financial planning and how it works. Below I've listed 9 myths and 9 realities which hopefully will help you to understand how it really works!

Myth 1: I can't afford professional financial advice.

Reality: It is almost certain that you will save much more than you pay in advisory fees. Getting your investments structured in the right way for example, could save you millions of pesos in the long run.

Myth 2: I don't have enough Money to start investing

Reality: Starting as soon as you can is the key. You don't need to be a successful entrepreneur to have a healthy investment portfolio. Over time, the magic of compound interest can help your modest contributions grow into a significant investment.

Myth 3: I don't need life insurance until I'm old

Reality: You need life insurance if you have any dependants. Also, purchasing life insurance when you're younger and in good health helps you lock in better premiums.

Myth 4: I am still young and don't need to think about saving for retirement yet

Reality: The sooner you start the better, and the difference can be quite staggering. Also, don't expect any promises from the government. With people living longer and longer, they will find it more and more difficult to meet pension obligations.

Myth 5: Financial Planning is only about Investing.

Reality: Investing is a key part of financial planning, but by no means the only one. Other important areas include budgeting, retirement and insurance planning.

Myth 6: Financial Planning is only for the wealthy

Reality: Financial Planning is for everyone! Everyone can benefit from applying the principles of financial planning. It's not just about investing large sums of money, it is about helping families plan their financial future and achieve their goals.

Myth 7: Financial Planners are the same as stockbrokers or insurance salesman

Reality: The great thing about financial planners is that they are able to look at your situation as a whole, taking into account all of your wishes and needs and what you have at the moment. Other professionals generally focus only on their area of expertise and are not able to understand your complete financial situation.

Myth 8: Investing is risky

Reality: Not investing is more risky! Any investment has an element of risk but constructing a diversified portfolio and investing over the long term will give you more chance of achieving your goals than keeping money under the mattress.

Myth 9: If I have a Financial Planner then I don't need to learn anything about investments

Reality: Of course your adviser is there to guide you and help you with any questions you may have. But the fact is, the more you understand, the more you will be able to take an active part in decisions and work together in order to achieve your objectives.

PlanFin consists of a group of international experts coordinated by Paul Urwin.

Paul received a Masters from Imperial College, Univesity of London, and has been awarded the Investment Management Certificate, and the Securities Institute Diploma Exam in Fund Management. In addition, he holds the first level of Chartered Financial Analyst Exam and has passed actuarial exams in Mathematics, Statistics, Economics and Finance.

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