Financial planning is about establishing a long-term strategy to secure your financial future with the lifestyle and living standards you desire.
‘Value’ often goes beyond dollars and cents. It can be the peace of mind and security that comes with being better prepared for the future. Once you’ve started a relationship with a financial planner you will quickly see that they add value to your circumstances by helping you in a number of ways.
How can a financial planner help?
- Setting goals. This process helps you decide where you want to go in life. A skilled financial planner can assist you to identify your financial goals, prioritise them and understand the steps required to turn your vision into reality.
By knowing your goals and timeframes, it’s easier to see where to concentrate your efforts. You’ll also quickly spot the distractions that would otherwise blow you off course.
Getting a financial plan started. Developing a written plan with a clear emphasis is critical to achieving your financial objectives. Your planner can also provide budgeting and debt management advice to help you start creating wealth without the costly anchor of “bad” debt. Protecting your future dreams with appropriate insurance is another key aspect your planner will manage.
- Maintaining a diversified portfolio. Every financial planner is required by law to take a client’s risk tolerance into account as part of their personalised financial plan. Diversification is another important tool for managing risk. to turn your vision into reality.
This means that the advice given and any investments recommended as part of that process are suited to your specific needs and risk level. And these will change to meet your circumstances as they vary throughout life.
- Being there over the long term. Going your own way is rarely the best option. Most people don’t have the background knowledge to feel confident about making investment decisions that will have a large bearing on their financial future. Keeping up with all of the legislative changes and new investment offers is also an onerous task. Your planner will be there to steer you on your path to financial independence and ensure your plan remains relevant and on track.
While investment magazines and subscription services can provide very useful information, they are often written by journalists with a general grounding in financial concepts but who are not looking at the fuller picture. A financial planner is trained to take into account all legislative and strategic implications to ensure you receive the best advice possible… and this training is ongoing.